Warren Buffett Is Not Giving Up on These 5 Stocks Despite Losses

3. Snowflake Inc. (NYSE:SNOW)

Number of Hedge Fund Holders: 65

YTD Share Price Decline as of August 19: 53.43%

Snowflake Inc. (NYSE:SNOW) is a cloud computing data company. Warren Buffett’s Berkshire Hathaway owns 6.12 million shares of Snowflake Inc. (NYSE:SNOW) as of Q2 2022, worth about $852 million. Buffett has held a position in the company since Q3 2020, and despite a 53% year to date loss, the billionaire has not given up on Snowflake Inc. (NYSE:SNOW). 

On August 16, Barclays analyst Raimo Lenschow raised the price target on Snowflake Inc. (NYSE:SNOW) to $210 from $158 and kept an Overweight rating on the shares. Investors are probably looking at Snowflake Inc. (NYSE:SNOW)’s consumption model  and whether it will remain solid in a more challenging spending backdrop and he expects “another quarter of elevated volatility post earnings,” the analyst said in an earnings preview note. He sees “room for a modest raise to the back half of the year”. 

According to Insider Monkey’s data, 65 hedge funds were bullish on Snowflake Inc. (NYSE:SNOW) at the end of June 2022, compared to 81 funds in the earlier quarter. Brad Gerstner’s Altimeter Capital Management is the biggest shareholder of the company, with 17 million shares worth $2.3 billion. 

Here is what ClearBridge Aggressive Growth Strategy has to say about Snowflake Inc. (NYSE:SNOW) in its Q2 2022 investor letter:

“Snowflake operates a cloud-based data platform for small and medium-sized businesses and enterprise customers. The company is a key beneficiary of software spending moving to the cloud, as well as the increasing strategic importance of data. With the potential to address the large and growing market for data cloud, a roughly $250 billion plus opportunity by 2026, we see a long runway for growth ahead. Although the company is already profitable, we believe Snowflake still has significant room for free cash flow margin expansion.”