5 Stocks to Sell According to Jinghua Yan’s TwinBeech Capital

3. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 81
Percentage Decrease in Stake in Q1: 100% 

Snowflake Inc. (NYSE:SNOW) provides cloud data warehousing software. On May 24, Rosenblatt analyst Blair Abernethy boosted Snowflake Inc. (NYSE:SNOW) to Buy from Neutral with a price objective of $255, down from $325. Due to the recent significant drop in the stock price, Abernethy advised investors in a research note that the new target price represented an 84% return from current levels.

Snowflake Inc. (NYSE:SNOW) saw a decrease in hedge fund sentiment recently. The number of long hedge fund positions declined to 81 at the end of the first quarter of 2022, compared to 84 positions in the previous quarter.

At the conclusion of the first quarter of 2022, Altimeter Capital Management, Snowflake Inc. (NYSE:SNOW)’s most prominent stakeholder, reported holdings worth $3.90 billion. Tiger Global Management followed it with a $1.57 billion stake.

Jinghua Yan’s hedge fund initially invested in Snowflake Inc. (NYSE:SNOW) in Q4 2021. During this period, the hedge fund purchased 37,391 shares of the company, worth $12.67 million. However, in the first quarter of 2022, TwinBeech Capital disposed of its stake in Snowflake Inc. (NYSE:SNOW) entirely.

Here is what Baron Funds has to say about Snowflake Inc. (NYSE:SNOW) in its Q1 2022 investor letter:

“Snowflake grew revenues…106% (to $1.2 billion — while new bookings in the fourth quarter alone were $1.2 billion in contract value) with 12% margins. The stock was down 32% in the first quarter. We believe that these companies, along with many others that we own, are the long-term beneficiaries of digital transformation, a multi-decade paradigm shift sweeping global economies today. Frank Slootman, Snowflake’s CEO, explained it this way in his most recent earnings call with investors:

“Snowflake’s growth is driven by digital transformation and long-term secular trends in data science and analytics, enabled by cloud-scale computing and Snowflake’s cloud-native architecture. Snowflake is a single data operations platform that addresses a broad spectrum of workload types and incredible performance economy and governance. As a platform, Snowflake enables the data cloud, a world without silos and the promise of unfettered data science.…” (Click here to see the full text).