Snowflake (NYSE: SNOW) was one of the hottest tech IPOs of 2020. The cloud services company went public at $120 last September, more than doubled on the first day, and hit a 52-week high of $429 in December.
At its peak, Snowflake was valued at about $120 billion -- more than 200 times its revenue in fiscal 2021, which ended this January. That nosebleed price-to-sales ratio was a bright red flag, and the stock subsequently tumbled back to about $240 as investors rotated out of growth stocks.
That sell-off burned a lot of bulls, but does it represent a fresh buying opportunity for patient investors who can stomach the volatility? Let's take a fresh look at Snowflake's business to find out.
Source Fool.com