{"id":10737,"date":"2022-09-03T23:56:00","date_gmt":"2022-09-03T15:56:00","guid":{"rendered":"https:\/\/www.granitefirm.com\/blog\/us\/?p=10737"},"modified":"2025-03-05T08:44:53","modified_gmt":"2025-03-05T00:44:53","slug":"snowflake-its-value","status":"publish","type":"post","link":"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/","title":{"rendered":"What company is Snowflake owned by Buffett? Where is its value?"},"content":{"rendered":"\n<p>In May 2017, The Economist published an article &#8220;<a href=\"https:\/\/www.economist.com\/leaders\/2017\/05\/06\/the-worlds-most-valuable-resource-is-no-longer-oil-but-data\" target=\"_blank\" rel=\"noreferrer noopener\">The world&#8217;s most valuable resource is no longer oil, but data<\/a>&#8221; Over time, the Economist was proven right.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Company_introduction\" >Company introduction<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Founding_story\" >Founding story<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#IPO\" >IPO<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Buffett_participated_Snowflakes_IPO\" >Buffett participated Snowflake&#8217;s IPO<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Company_profile\" >Company profile<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Disrupted_technology_and_business_solutions\" >Disrupted technology and business solutions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#How_is_it_different_from_the_old_technology\" >How is it different from the old technology?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Where_is_its_value\" >Where is its value?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Different_business_models\" >Different business models<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Customers\" >Customers<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Customer_preference\" >Customer preference<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#How_many_customers_does_it_has\" >How many customers does it has?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Customer_loyalty\" >Customer loyalty<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Competitors\" >Competitors<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Big_cloud_computing_platforms\" >Big cloud computing platforms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Main_competitors\" >Main competitors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Smaller_startups\" >Smaller startups<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Open_source_platforms\" >Open source platforms<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Business_performance_and_share_price\" >Business performance and share price<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#How_is_the_business_performing\" >How is the business performing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Stock_valuation\" >Stock valuation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#How_does_it_perform_in_current_bear_market\" >How does it perform in current bear market?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/09\/03\/snowflake-its-value\/#Related_article\" >Related article<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Company_introduction\"><\/span>Company introduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Founding_story\"><\/span>Founding story<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In 2012, three data warehouse experts, Benoit Dageville, Thierry Cruanes and Marcin Zukowski, founded Snowflake (ticker: SNOW) in California, USA, with the aim of breaking down data silos in organizations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"IPO\"><\/span>IPO<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>On September 17, 2020, Snowflake was successfully listed on the US stock market. It became the largest software company in the history of the United States to go public, surpassing the listing of VMware (ticker: VMW) in 2007; the stock price soared 111.6% on the day of listing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Buffett_participated_Snowflakes_IPO\"><\/span>Buffett participated Snowflake&#8217;s IPO<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>And surprisingly, Buffett, who rarely holds technology stocks, participated in this IPO. In addition to participating in the listing, Buffett also purchased another batch of shares from other investors, placing a total of $570 million in bets at the closing of the listing, holding a total of 15.2% of the shares. It&#8217;s a rare bet for Buffett, whose last IPO was Ford Motor (ticker: F).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Company_profile\"><\/span>Company profile<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Snowflake is mainly to help customers store and manage big data in the cloud; more precisely, it can provide customers with real-time online huge data storage and analysis operations without limiting the computing environment of a specific cloud provider.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disrupted_technology_and_business_solutions\"><\/span>Disrupted technology and business solutions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_is_it_different_from_the_old_technology\"><\/span>How is it different from the old technology?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>At the technical level, Snowflake leads the industry in proposing the concept of Data-warehouse-as-a-Service (DaaS), which completely separates the storage and calculation of data, thereby reducing the workload; this solves many problems such as easy collapse of the architecture of the uploaded data storage system, difficulty in high-frequency reading and writing, and difficulty in data replication and migration. Snowflake software allows users to analyze and calculate data across multiple cloud platforms, and this technology has now become the mainstream of data warehouse development.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Where_is_its_value\"><\/span>Where is its value?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you are not a relevant software database technician, you may not see the value of the above two short sentences about the introduction of Snowflake in company profile. But there are a few things in those two sentences above that are important:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Snowflake is a native vendor of cloud computing, that is, all data is stored in the cloud, which is in line with the general trend of software that is currently developing. Snowflake&#8217;s benchmark peer (non-cloud-native data storage and management vendors) is Oracle (ticker: ORCL), the software giant that was on par with Microsoft three decades ago. With my analogy, you can see where the two stand; the only difference is that 30 years from now, cloud computing has changed everything.<\/li>\n\n\n\n<li>The storeof data is not limited to a specific cloud provider, that is, whether the customer currently uses Amazon, Microsoft, Alphabet, or Alibaba, Snowflake can support it. This is important for large enterprises, because even the best and most powerful features offered can be intimidating to customers if they need to switch platforms.<\/li>\n\n\n\n<li>Snowflake&#8217;s core business is big data. After 20 years of mobile computing and more than 30 years of internet development, all customers have huge amounts of data to process. This is an irreversible trend of the times, and the data generated will only increase in the future. More and more, all customers will need this feature.<\/li>\n\n\n\n<li>The last point is that Snowflake is currently developing and strengthening, and is the most lucrative part of the entire industry (this part is still in its teenage years in the software industry): data stored in the cloud for customers (these large data that has been stored is called data warehouse) for various analysis, processing, and presentation.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_business_models\"><\/span>Different business models<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Reflected in the business model, Snowflake&#8217;s customers do not have to pay a fixed annual fee in advance, and the platform will settle based on the actual consumption of computing and storage by customers during use period. Customers will be charged by how much is used and how much is paid, so that customers can really achieve the purpose of cost control.<\/p>\n\n\n\n<p>Moreover, for the actual statistics of resource consumption, customers can compare the input resources and costs of each link with the traditional model, and truly obtain accurate ROI&#8212;this is the most troublesome place for all enterprise information departments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Customers\"><\/span>Customers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Customer_preference\"><\/span>Customer preference<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>According to <a href=\"https:\/\/www.barrons.com\/articles\/snowflake-stock-price-upgrade-51655990037?siteid=yhoof2\" target=\"_blank\" rel=\"noreferrer noopener\">JPMorgan Chase&#8217;s annual survey of 142 CIOs of large corporations <\/a>that control more than $100 billion in corporate information department budgets, published on June 23, 2022:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Snowflake soared to &#8220;elite territory&#8221; in the survey and has a strong reputation among customers.<\/li>\n\n\n\n<li>Snowflake was No. 1 in install spending intentions, beating out Microsoft (ticker: MSFT), Alphabet (tickers: GOOGL and GOOG), and CrowdStrike (ticker: CRWD).<\/li>\n\n\n\n<li>Of all the emerging company visions that impressed respondents the most, Snowflake was also the No. 1 company.<\/li>\n<\/ul>\n\n\n\n<p>How does it compare to major large competitors? The results of a survey in Q3 2020 are as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Amazon Redshift has 13,060 customers<\/li>\n\n\n\n<li>Google Big Query has 8,272 customers<\/li>\n\n\n\n<li>Microsoft Synapse has 6,032 customers<\/li>\n\n\n\n<li>While Snowflake has only 3,117 customers<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_many_customers_does_it_has\"><\/span>How many customers does it has?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>According to the information released by Snowflake:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>As of April 2022, nearly two-fifths of Fortune 500 companies are Snowflake customers; and this is continuing to increase.<\/li>\n\n\n\n<li>As of the first quarter of 2022, there are 184 customers who have brought in at least US$1 million in revenue in the past year.<\/li>\n\n\n\n<li>At the end of 2021, there are a total of 4239o customers.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Customer_loyalty\"><\/span>Customer loyalty<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Snowflake&#8217;s net revenue net retention ratio (NDR) was 168%. According to Crunchbase, the median net retention rate for 36 SaaS companies on the market during the same period was 104%. Clearly, Snowflake&#8217;s NDR is much higher than the SaaS industry average. It can be seen that customers are very loyal to SaaS products.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Competitors\"><\/span>Competitors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Big_cloud_computing_platforms\"><\/span>Big cloud computing platforms<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Snowflake has sales agreements with these large demand-side computing platform manufacturers, and they have helped Snowflake sell its products to customers. This may subvert your imagination, because these large on-demand computing platform manufacturers will provide their own existing data storage solutions to attract customers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Amazon<\/li>\n\n\n\n<li>Microsoft<\/li>\n\n\n\n<li>Alphabet<\/li>\n\n\n\n<li>Alibaba<\/li>\n\n\n\n<li>Huawei<\/li>\n\n\n\n<li>Tencent<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Main_competitors\"><\/span>Main competitors<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Snowflake&#8217;s main competitors are not generalists. All of them are large-scale manufacturers of technology software, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Teradata (ticker: TDC)<\/li>\n\n\n\n<li>Oracle<\/li>\n\n\n\n<li>IBM (ticker: IBM)<\/li>\n\n\n\n<li>SAP (ticker: SAP)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Smaller_startups\"><\/span>Smaller startups<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In addition to these big old companies, Snowflake&#8217;s competitors include the following startup software companies:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cloudera (ticker: CLDR)<\/li>\n\n\n\n<li>Databricks<\/li>\n\n\n\n<li>Panoply<\/li>\n\n\n\n<li>Vertica<\/li>\n\n\n\n<li>Qubole<\/li>\n\n\n\n<li>Pivotal Greenplum (ticker: VMW)<\/li>\n\n\n\n<li>Rubrik<\/li>\n\n\n\n<li>Hadoop HDFS<\/li>\n\n\n\n<li>Xplenty<\/li>\n\n\n\n<li>Cloudian<\/li>\n\n\n\n<li>Sisense<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Open_source_platforms\"><\/span>Open source platforms<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Vendors of open source platforms, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Altinity Clickhouse<\/li>\n\n\n\n<li>Greenplum Database<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Business_performance_and_share_price\"><\/span>Business performance and share price<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_is_the_business_performing\"><\/span>How is the business performing?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Year 2021<\/td><td>Snowflake<\/td><td>Salesforce<\/td><td>Microsoft<\/td><\/tr><tr><td>Revenue<\/td><td>1,219.3 million (+105.91%)<\/td><td>26,492 million (+24.66%)<\/td><td>168,088 million (+17.53%)<\/td><\/tr><tr><td>Gross margin<\/td><td>62.4%<\/td><td>73.48%<\/td><td>68.93%<\/td><\/tr><tr><td>Operating margin<\/td><td>(715) million <\/td><td>2.27%<\/td><td>41.59%<\/td><\/tr><tr><td>Net margin<\/td><td>(715) million <\/td><td>5.45%<\/td><td>36.45%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"399\" height=\"110\" src=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2022\/06\/s-1600x1200-2.jpg\" alt=\"Snowflake\" class=\"wp-image-10766\" srcset=\"https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2022\/06\/s-1600x1200-2.jpg 399w, https:\/\/www.granitefirm.com\/blog\/us\/wp-content\/uploads\/sites\/2\/2022\/06\/s-1600x1200-2-300x83.jpg 300w\" sizes=\"auto, (max-width: 399px) 85vw, 399px\" \/><figcaption class=\"wp-element-caption\">Credit: Wikimedia<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stock_valuation\"><\/span>Stock valuation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Index<\/td><td>Snowflake<\/td><td>Salesforce<\/td><td>Microsoft<\/td><\/tr><tr><td>Share price<\/td><td>143.11<\/td><td>166.03<\/td><td>242.26<\/td><\/tr><tr><td>Market capitalization<\/td><td>45.523 billion<\/td><td>165.2 billion<\/td><td>1,812 billion<\/td><\/tr><tr><td>P\/E<\/td><td>0<\/td><td>164.06<\/td><td>25.29<\/td><\/tr><tr><td>P\/S<\/td><td>27.59<\/td><td>5.78<\/td><td>9.91<\/td><\/tr><tr><td>Dividend yield<\/td><td>0<\/td><td>0%<\/td><td>0.98%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_does_it_perform_in_current_bear_market\"><\/span>How does it perform in current bear market?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Product revenue in the first quarter of 2022 was US$394 million, an annual increase of 84%, and the gross profit margin of the product was 72%, compared with 66% in the same period last year.<\/p>\n\n\n\n<p>Year-on-year customer growth in the first quarter was 40%, with more than 6,300 customers as of April. Its net revenue net retention ratio improved to 174% from 168% in the first quarter of fiscal 2022, and it&#8217;s clear that customers still love Snowflake&#8217;s products. Net revenue retention is an important metric for software companies because it measures how much revenue grows after losing customers.<\/p>\n\n\n\n<p>Another important metric, remaining performance obligation (RPO) performance, Snowflake ended the first quarter with a remaining performance obligation of $2.6 billion, up 82% year over year.<\/p>\n\n\n\n<p><em>I am the author of the original text, the abridged version of this article was originally published in Smart monthly magazine.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Related_article\"><\/span>Related article<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/05\/19\/nubank-advantages\/\" target=\"_blank\" rel=\"noreferrer noopener\">What company is Nubank owned by Buffett? 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Where is its value?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/23\/snowflakes-competitiveness\/\">Deep dive on Snowflake&#8217;s competitiveness<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/09\/20\/oracles-oci-ai\/\">Oracle\u2019s cloud computing and AI finally recognized<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2024\/03\/27\/oracle-db-dominator\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does database monopoly Oracle make money? What are the prospects?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/08\/22\/salesforce-crm-cloud\/\" target=\"_blank\" rel=\"noreferrer noopener\">How does Salesforce make money? Why is it so successful?<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/12\/13\/veeva-systems\/\">Veeva, the king of industry systems in the lifescience industry<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/02\/26\/overlord-of-cloud-computing\/\" target=\"_blank\" rel=\"noreferrer noopener\">Microsoft, the dominant overlord of cloud computing<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2022\/06\/17\/wells-fargo\/\">Wells Fargo, a major holding once praised by Buffett and Munger<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2025\/03\/04\/value-and-problem-palantir\/\">The value of Palantir, pros and cons of Palantir investment<\/a>&#8220;<\/li>\n\n\n\n<li>&#8220;<a href=\"https:\/\/www.granitefirm.com\/blog\/us\/2021\/06\/14\/palantir-introduction\/\">What kind of company is Palantir?<\/a>&#8220;<\/li>\n<\/ul>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>The content of this site is the author\u2019s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.<\/em><\/li>\n\n\n\n<li><em>I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers&#8217; direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.<\/em><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What company is Snowflake owned by Buffett? Where is its value? In May 2017, The Economist published an article &#8220;The world&#8217;s most valuable resource is no longer oil, but data&#8221; Over time, the Economist was proven right.<\/p>\n","protected":false},"author":1,"featured_media":10766,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[127,420,80,122,11],"tags":[829,379,827,97,95,168,3,339,333,826,828,777],"class_list":["post-10737","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cloud-computing","category-founders","category-portfolio-management","category-software","category-buffett","tag-cldr","tag-crm","tag-crwd","tag-goog","tag-googl","tag-ibm","tag-msft","tag-orcl","tag-sap","tag-snow","tag-tdc","tag-vmw"],"_links":{"self":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/10737","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/comments?post=10737"}],"version-history":[{"count":36,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/10737\/revisions"}],"predecessor-version":[{"id":35052,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/posts\/10737\/revisions\/35052"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media\/10766"}],"wp:attachment":[{"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/media?parent=10737"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/categories?post=10737"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.granitefirm.com\/blog\/us\/wp-json\/wp\/v2\/tags?post=10737"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}