Think Snowflake Stock Is Expensive? This Chart Might Change Your Mind.

Core Viewpoint - Snowflake's stock, despite being perceived as expensive, may present a buying opportunity due to its current valuation metrics and the positive impact of AI on its growth trajectory [2][5][6]. Group 1: Valuation Metrics - The company currently has a price-to-sales (P/S) ratio of 16, which is considered high but not far above its historical lows [6][7]. - The P/S ratio reached a peak of 183 in December 2020, indicating that the current valuation represents a more than 90% discount from its all-time high [7]. - Prior to the leadership change in February, the stock traded at a P/S ratio close to 25, suggesting that the current valuation may be attractive given the renewed focus on AI-driven growth [8]. Group 2: Leadership and Market Reaction - The new CEO, Sridhar Ramaswamy, has positively influenced investor sentiment, particularly after attributing the company's growth to AI in the fiscal third quarter of 2025, leading to a 25% increase in stock price [4][5]. - Following the leadership change, investor confidence has been restored, which could further enhance the stock's valuation as the market adjusts to the AI-oriented direction of the company [5][8].