Should You Sell Snowflake (SNOW)?

Aristotle Atlantic Partners, LLC, an investment advisor, released its “Focus Growth Strategy” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, Aristotle Atlantic’s Focus Growth strategy posted a return of 2.66% net of fees compared to a 2.20% return for the Russell 1000 Growth Index. Stock selection and allocation led the strategy to outperform in the quarter relative to its benchmark. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Aristotle Atlantic Focus Growth Strategy highlighted stocks like Snowflake Inc. (NYSE:SNOW) in its Q4 2022 investor letter. Headquartered in Bozeman, Montana, Snowflake Inc. (NYSE:SNOW) is a cloud-based data platform provider. On April 5, 2023, Snowflake Inc. (NYSE:SNOW) stock closed at $146.48 per share. One-month return of Snowflake Inc. (NYSE:SNOW) was 2.68%, and its shares lost 30.93% of their value over the last 52 weeks. Snowflake Inc. (NYSE:SNOW) has a market capitalization of $49.329 billion.

Aristotle Atlantic Focus Growth Strategy made the following comment about Snowflake Inc. (NYSE:SNOW) in its Q4 2022 investor letter:

“We sold Snowflake Inc. (NYSE:SNOW) and thereby reduced our subsector weight in software. We see risks to the consumption model from further spending cuts and rationalizations across their core verticals which include finance, technology and media. These three verticals have contributed to the weaknesses in the digital advertising space. We have increasing concerns that even the company’s conservative Fiscal Year 2023 guidance for revenue growth could now be pressured, as customer spending cuts have accelerated.”

Snowflake Inc. (NYSE:SNOW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held Snowflake Inc. (NYSE:SNOW) at the end of the fourth quarter which was 73 in the previous quarter.

We discussed Snowflake Inc. (NYSE:SNOW) in another article and shared the list of best artificial intelligence stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.