This Stock Is Melting...

Is it a bargain, or should investors stay away? [Shield] AN OXFORD CLUB PUBLICATION Loyal reader since August 2019 [Wealthy Retirement]( [View in browser]( SPONSORED You're Invited: Gift Gap Trading Summit... RSVP NOW! [Gift Gap Trading Summit]( Professional Trader Bryan Bottarelli is hosting a summit to reveal his revolutionary new trading tool... With top gains of up 114%, 235%, and 452% in 30 days or less according to backtesting... [>> RESERVE YOUR SEAT <<]( [THE VALUE METER]( [Snowflake's Stock Is Melting... Should Investors Stay Away?]( [Anthony Summers, Director of Trading, The Oxford Club]( [Anthony Summers]( Snowflake (NYSE: SNOW) has made a big splash in the data world. The company's cloud-based platform helps companies store, manage, and analyze their data. Think of it as a digital warehouse for all your business information. Snowflake's magic lies in its ability to handle massive amounts of data quickly and easily, letting companies find insights they might have missed before. That being said, the stock has surely seen better days. In the last seven months, shares have fallen from a 52-week high of about $235 down to around $112, a drop of over 50%. [Chart: Snowflake (NYSE: SNOW)]( [View larger image]( This decline raises an important question: Does the recent dip present a good buying opportunity for value-conscious investors? Let's run the stock through The Value Meter to find out. First, we'll look at Snowflake's enterprise value-to-net asset value (EV/NAV) ratio, which tells us how much investors are willing to pay for the company's assets. Snowflake's EV/NAV sits at 7.86, which is below the average of 10.95 for similar companies. This suggests that, on paper, Snowflake might be a bit undervalued. However, we also need to consider cash flow. Over the past year, Snowflake's quarterly free cash flow averaged 4.09% of its net assets. That's quite a bit lower than the 7.88% average for companies with similarly steady cash flow. This tells us that while Snowflake is making money, it's not as efficient as some of its peers. Despite these mixed signals, Snowflake's recent financial results show strong growth. In the second quarter, product revenue hit $829.3 million, up 30% year over year. The company now boasts 510 customers with trailing 12-month product revenue greater than $1 million, a 28% increase from the previous year. Importantly, Snowflake's net revenue retention rate stands at a solid 127%, indicating that existing customers are spending more over time. Snowflake is also making strides in artificial intelligence. The company reported that over 2,500 accounts were using Snowflake AI on a weekly basis by the end of the second quarter. This push into AI could open up new revenue streams and strengthen Snowflake's competitive position. This potential does come with risks, however. The tech world moves quickly, and Snowflake faces tough competition. The company is also spending heavily to fuel its growth, which explains the lower cash flow numbers. Non-GAAP operating margin for the second quarter was just 5%, down from 8% in the same quarter last year. So, when we add it all up, how does Snowflake's stock look at its current valuation? [Find Out Its Value Meter Score]( [Investment U Conference 2025 - Ponte Vedra Inn & Club in Ponte Vedra Beach, Florida, March 30-April 2, 2025. Save $100 when you register by Oct 15! Reserve your seat today!]( SPONSORED [Yours Free! Top FIVE Dividend Stocks Right Now]( Marc Lichtenfeld - income expert and author of Get Rich with Dividends - is giving away his Ultimate Dividend Package... completely free of charge! 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Is it a bargain, or should investors stay away?%0D%0A%0D�€¦estors-stay-away/?src=shared) [Email Share](mailto:?subject=A%20great%20piece%20from%20Wealthy%20Retirement...&body=From%20Wealthy%20Retirement:%0D%0A%0D%0AThis tech stock is melting... Is it a bargain, or should investors stay away?%0D%0A%0D�€¦estors-stay-away/?src=shared) [Push Alert]( [Push Alert]( SPONSORED [Unusual Passive Income Investment (Found on a Golf Course)]( One man turned $1,000 into a decadeslong passive income stream... eventually reaching $100,000 per year! All from a single golf course tip. [Golf club and ball in grass]( [CLICK HERE TO FIND OUT HOW HE DID IT]( [The Oxford Club]( You are receiving this email because you subscribed to Wealthy Retirement. Wealthy Retirement is published by The Oxford Club. Questions? Check out our [FAQs](. Trying to reach us? [Contact us here.]( Please do not reply to this email as it goes to an unmonitored inbox. 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