Snowflake Beat Expectations in Q3, but This Is Why I'd Still Avoid the Stock

Snowflake (NYSE: SNOW) stock is showing signs of life after releasing some encouraging quarterly results last month. It's been a tough year for the data storage company, whose CEO retired unexpectedly in February, leading to a stock sell-off. At a time when many artificial intelligence (AI) stocks are thriving, shares of Snowflake remain in negative territory this year.There does appear to be some renewed enthusiasm, however, after the company posted a solid earnings beat, resulting in a big rally in its share price. But despite the seemingly strong performance last quarter, I'd still avoid the stock. Here's why.There are lots of growth opportunities for Snowflake. As more businesses move their operations to the cloud, especially with AI, there'll be a need for not just data storage, but also for analytics and processing. Snowflake can help with all of this. But the company needs to demonstrate that it can do that profitably, and right now, that isn't evident through the numbers it's been releasing.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool