Snowflake (NYSE: SNOW) has had quite a year so far in 2023, propelled higher by strong results to close out last year and a broader recovery by technology stocks. Share prices of the cloud-based data specialist are up 24% so far this year, more than 2-1/2 times the 9% gains of the S&P 500. This is in stark contrast to the stock's abysmal performance last year, when the price fell nearly 58%. 

The biggest catalyst driving its market-beating gains is Snowflake's better-than-expected financial results, which suggested the start of a recovery for the software-as-a-service (SaaS) market. This gave investors confidence that the worst might be over and that the macroeconomic headwinds that buffeted the stock might finally be slowing.

What does this mean for investors who sat out Snowflake's current rally? Should they buy now in anticipation of further gains or avoid the stock due to its frothy valuation and the economic uncertainty that remains? Let's take a look.

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Source Fool.com