“Snowflake (SNOW) has significant room for free cash flow margin expansion”

ClearBridge Investments, an investment management firm, has released its “Aggressive Growth Strategy” letter to investors for the second quarter of 2022 – a copy of which can be downloaded here. Aggressive growth strategy ClearBridge outperformed its benchmark Russell 3000 Growth Index in the second quarter. On an absolute basis, the Strategy recorded losses in the eight sectors in which it was invested (out of a total of 11 sectors). The main detractors were the IT and communication services sectors. Review the fund’s top 5 positions to get an overview of its top picks for 2022.

In its letter to investors for the second quarter of 2022, ClearBridge Aggressive Growth Strategy mentioned Snowflake Inc. (NYSE:SNOW) and explained his ideas for the company. Founded in 2012, Snowflake Inc. (NYSE: SNOW) is a cloud-based data warehousing company based in Bozeman, Montana, with a market capitalization of $51.6 billion. Snowflake Inc. (NYSE: SNOW) has returned -52.07% year-to-date, while its 12-month returns are down -40.60%. The stock closed at $162.37 per share on August 03, 2022.

Here’s what ClearBridge Aggressive Growth Strategy has to say about Snowflake Inc. (NYSE: SNOW) in its Q2 2022 Letter to Investors:

Snowflake operates a cloud-based data platform for small and medium-sized businesses and enterprise customers. The company is a major beneficiary of the migration of software spending to the cloud, as well as the growing strategic importance of data. With the potential to cater to the large and growing data cloud market, an opportunity of around $250 billion+ by 2026, we see a long streak of growth ahead. Although the company is already profitable, we believe Snowflake still has significant leeway to increase free cash flow margin. »

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Our calculations show that Snowflake Inc. (NYSE: SNOW) fell short and did not make our list of 30 most popular stocks among hedge funds. Snowflake Inc. (NYSE: SNOW) was in 81 hedge fund portfolios at the end of Q2 2022, up from 84 funds in the previous quarter. Snowflake Inc. (NYSE: SNOW) has returned -12.70% over the past 3 months. You can find other letters from hedge fund investors and leading investors on our letters to hedge fund investors 2022 Q2 page.

Disclosure: none. This article originally appeared on Insider Monkey.