Will Snowflake Be a Trillion-Dollar Stock by 2035?

Core Viewpoint - Snowflake's stock is gaining traction among customers and investors, with a potential market cap growth to $1 trillion being speculated, driven by its rapid growth rate and compelling product offering [1][2]. Group 1: Market Potential - Snowflake's current market cap is approximately $65 billion, requiring an average annual growth of over 28% to reach $1 trillion by the end of 2035 [2]. - Despite a 20% decline since its IPO, the stock has seen a 40% gain over the last year, indicating potential for recovery [2]. Group 2: Business Model and Competitive Advantage - Snowflake is a leader in the data cloud sector, providing centralized data management that avoids the pitfalls of data silos [3]. - Unlike competitors like Amazon and Microsoft, Snowflake operates as a neutral player, allowing it to integrate seamlessly with various infrastructure providers [3]. Group 3: Customer Growth and Financial Performance - As of the end of Q3 fiscal 2024, Snowflake has over 8,900 clients, a 24% year-over-year increase, with over 430 customers spending more than $1 million annually, growing 52% [4]. - Revenue for the first nine months of fiscal 2024 exceeded $2 billion, reflecting a 38% annual increase, with a net revenue retention rate of 135% [5]. Group 4: Financial Challenges and Valuation - Despite revenue growth, Snowflake reported a loss of $667 million in the first three quarters of fiscal 2024, up from $590 million the previous year [5]. - The company has a price-to-sales ratio of 25, which is near historical lows, but revenue growth is expected to slow to around 30% by fiscal Q4 [6][7].