Better Bear Market Buy: DigitalOcean vs. Snowflake Stock
Facing high levels of inflation, rising interest rates, and other macroeconomic pressures, cloud software stocks have gotten hit hard across 2022's trading. Snowflake (NYSE: SNOW) and DigitalOcean (NYSE: DOCN) are among the category-leading service providers. Both have seen dramatic sell-offs, and big valuation pullbacks could present worthwhile buying opportunities for risk-tolerant investors on the hunt for discounted growth stocks.
But which of these companies is likely to be the better buy? Both companies have some appealing strengths and long runways for expansion, but I think that one of them will ultimately go on to deliver superior returns. Here's why.
Before diving into recent business performance and valuation metrics, investors should understand Snowflake's and DigitalOcean's core service offerings and how the businesses are approaching growth.
Source Fool.com
