5 Best Up-and-Coming Stocks to Buy Now

4. Snowflake Inc. (NYSE:SNOW)

Revenue Growth in Q1 2022: 84.51%

Revenue Growth in Q2 2022: 82.68%

Revenue Growth in Q3 2022: 66.55%

Number of Hedge Fund Holders: 73

Snowflake Inc. (NYSE:SNOW) is a leading cloud data platform provider that is revolutionizing the way organizations store, share, and analyze data. The company has experienced rapid growth since its IPO in 2020, driven by a strong customer base that includes many Fortune 500 companies. Moreover, the company’s financials are robust. Snowflake Inc. (NYSE:SNOW) has seen strong growth in revenue and profits. Snowflake Inc. (NYSE:SNOW) grew its revenue by over 80% in both Q1 and Q2 of 2022, and by over 65% in Q3 2022.

On January 9, Piper Sandler analyst Brent Bracelin updated his price target on Snowflake Inc. (NYSE:SNOW) to $194 from $200 and maintained an Overweight rating on the shares.

At the close of Q3 2022, 73 hedge funds were bullish on Snowflake Inc. (NYSE:SNOW) and disclosed positions worth $6.01 billion in the company. As of September 30, Altimeter Capital Management is the most prominent investor in the company and has a stake worth $2.88 billion.

Here is what Baron Funds had to say about Snowflake Inc. (NYSE:SNOW) in its third-quarter 2022 investor letter:

“Snowflake Inc. (NYSE:SNOW) provides a cloud platform for large-scale data analytics. Snowflake’s shares were up 22%, reacting positively to second quarter results that beat market forecasts with revenue growth of 83% year-over year and adjusted free-cash-flow margins of 12%. Record new customer additions and world-class dollar net retention of over 170% implied resiliency in demand despite increasing macro uncertainties. We remain shareholders and believe that Snowflake will be able to benefit from long-term growth with favorable unit economics, addressing one of the largest opportunities in technology. Snowflake’s culture of innovation (such as its expansion into cloud application development and data sharing), go-to-market initiatives, and an ongoing secular shift to the cloud in its end markets should help, in our view, sustain the company’s competitive moats over the long term.”