Snowflake: The Pros and Cons of Being "Overvalued"
Snowflake (NYSE: SNOW) has generated plenty of buzz since coming public on Sept. 16. The market currently values the company around $63 billion, a lofty market cap for a newly public and unprofitable company. Yet many of the greatest companies and stocks of our time were once called "overvalued." Let's look at the pros and cons of Snowflake's current valuation, starting with a primer on what exactly Snowflake does.
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Snowflake calls itself the only data warehouse built for the cloud. Snowflake's competitive advantage is that it helps solve many problems of current cloud data storage. For starters, its architecture sits on top of the three main cloud providers (Alphabet, Amazon, and Microsoft). This helps its customers access and analyze all their data in Snowflake, rather than trying to piece it together from multiple clouds.
Source Fool.com
