Recent-IPO darling Snowflake (NYSE: SNOW) deserves its high valuation. The data-warehouse-as-a-service specialist has been growing revenue at a fast pace over the last several years, and it remains exposed to the long-term growth opportunities that cloud and data analytics represent.
But the company's lofty valuation suggests the market expects phenomenal long-term performance. Does that mean that Snowflake's stock overpriced, despite the company's attractive potential?
As enterprises have been digitizing their operations, they have been accumulating vast amounts of data. That trend isn't likely to wane: Research outfit IDC estimates the amount of worldwide data will grow at a compound annual rate (CAGR) of 61% by 2025.
Source Fool.com