Snowflake Inc. (SNOW): A Bull Case Theory

We came across a bullish thesis on Snowflake Inc. on Disruptive analytics’s Substack by Magnus Ofstad. In this article, we will summarize the bulls’ thesis on SNOW. Snowflake Inc.’s share was trading at $238.66 as of August 29^th. SNOW’s forward P/E was 208.33 according to Yahoo Finance.

Snowflake (SNOW) delivered another solid quarter, reinforcing its turnaround that began in Q1. Product revenue rose 32% YoY in Q2, while its net revenue retention rate remained strong at 125%, reflecting continued customer loyalty and expansion. The company added 533 new customers, bringing its total base to over 12,000, including 654 customers generating more than $1 million in annual revenue, up 28% from last year. Profitability also improved, with non-GAAP operating margin reaching 11.1%, a 6.1% increase over the prior year.

As a leading data lake storage provider, SNOW’s architecture eliminates data silos, allowing organizations to securely share data internally and externally, accelerating collaboration and analytics. This makes SNOW a natural choice for enterprises pursuing AI-driven insights and data-driven strategies, a positioning that underpins its growth momentum. While a discounted cash flow model does not suggest the stock is undervalued, comparisons to Databricks, which holds an even higher private market valuation, indicate further upside potential for SNOW. However, the company must sustain its current pace of execution to justify its premium positioning.

The stock has already risen over 50% this year, highlighting both investor confidence and the risk of volatility should growth or margins falter. For long-term investors, SNOW’s market leadership, robust expansion among large accounts, and alignment with enterprise AI adoption trends provide a compelling case. Yet the path forward is dependent on maintaining operational discipline and scaling profitability. With high expectations already priced in, the investment carries both meaningful upside and significant execution risk.

Previously we covered a bullish thesis on Snowflake Inc. (SNOW) by Oliver | MMMT Wealth in April 2025, which highlighted strong net revenue retention, margin improvements, and robust financial health. The company’s stock price has appreciated approximately by 70% since our coverage as the thesis played out with solid execution. Magnus Ofstad shares a similar view but emphasizes quarterly performance, Databricks’ valuation, and volatility risks.

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Disclosure: None.