Trade Alert: Bought Snowflake (SNOW) $130

Snowflake was looking interesting when I first recommended a Buy at $154 – it’s fallen way below that target price and I’ll keep accumulating. On 5/22 Q1 results were quite good, but with the stock quoting over 16x sales it initially went up but dropped significantly. At $130, it’s still not cheap at 13x sales. I still believe in the best in its class story, Annual Recurring Revenues is growing much faster than revenues and cash flow is higher than 25% of revenues. But do expect volatility given how severely the markets are punishing lower growth and unprofitable companies. I’ve only completed about 40% of my planned purchases and will keep adding on declines.