Is Snowflake a Good Buy for 2022?
Winter may have arrived, but data warehouse provider Snowflake (NYSE: SNOW) remains a red-hot name on Wall Street. Snowflake, which boasts Salesforce.com and Warren Buffet's Berkshire Hathaway as investors, went public in September 2020 and recorded the largest software IPO in history. Since its public offering, revenue growth has exploded and Snowflake's market capitalization has climbed 41% to $99 billion. As growth stocks continue to battle market volatility, let's dig in and see if Snowflake is a good buy as we head into the new year.
Snowflake provides cloud-based data warehouse solutions to large enterprises such as Capital One, Anthem, and Twilio. The impacts of the COVID-19 pandemic underscored the importance for businesses to embrace flexible cloud computing solutions. Data warehouses serve as a critical component of systems management by providing short-term stability within an enterprise, while scaling for the long-term as businesses collect, store, and analyze more data.
According to Research And Markets, the global data warehouse-as-a-service market is expected to grow at a 22% compound annual growth rate and reach $13 billion by 2026. Moreover, Snowflake's latest investor presentation suggests that its total addressable market, capturing both data warehousing and cloud data platforms, is $90 billion. Snowflake has been a beneficiary of a large and growing addressable market and its financial results prove it.
Source Fool.com
