Will Snowflake Be a Trillion-Dollar Stock by 2030?
Snowflake (NYSE: SNOW) was one of the hottest growth stocks in 2020 and 2021. The cloud-based warehousing company went public at $120 per share in September 2020, and its stock more than doubled to $245 on its very first trade.
Snowflake's stock eventually hit an all-time high of $401.89 in November 2021. That gave it a market cap of $122.9 billion, a whopping 102 times the $1.2 billion in revenues it would generate in fiscal 2022 (which ended in January 2022).
But as of this writing, Snowflake's stock trades around $145 per share with a market cap of $46.6 billion. It still isn't cheap at 23 times this year's estimated sales of $2.1 billion, but that might be a reasonable valuation relative to its growth rates. Between fiscal 2019 and fiscal 2022, Snowflake's annual revenue grew at a jaw-dropping compound annual growth rate (CAGR) of 133%. But can it maintain that momentum over the long term and become a trillion-dollar stock by 2030?
Source Fool.com
