Snowflake stock is trading an at enterprise value 76 times its sales for the next year. In contrast, Zoom is trading at 41 times its sales, while Shopify is trading at 31 times its sales.
Investors have piled into Snowflake stock in pursuit of the next big thing in cloud computing, resulting in its pricey valuation. Snowflake’s market, data warehousing, is on track to hit $35 billion in 2025 from $18.6 billion in 2017. With stocks of companies such as Amazon costing thousands of dollars, some investors see Snowflake stock as a lower entry point to the cloud sector.
