Bullpen.News From Edwin Dorsey
Get Daily Recap Feedback

NYSE

Snowflake Inc.

SNOW

4 stories

$111B Market cap · 2026-10-20

@convequity 1 click

Convequity on X

Software multiples have fallen further since our January report. As of 7 Oct 2026, 238 companies in our all-software watchlist have EV/Sales (NTM) data on Koyfin. The median is 3.1x, down from 3.7x in January. The average is 5.4x, down from 6.2x. The 25th percentile is 1.8x, down from 1.9x. The 75th percentile is 5.5x, down from 6.1x. 191 of the 238 (80%) trade below our 6.7x private equity floor. 113 trade below 3x. The Bessemer Cloud Index shows the same pattern. Its median is 4.7x, down from 5.1x in January. 46 of its 68 companies (68%) trade below 6.7x. The cheapest are $CXM at 0.9x, $SPT at 1.1x, $MNDY at 1.7x and $WIX at 1.8x. In our watchlist, only 21 companies trade above 10x. The most expensive are $PLTR at 44.5x, $CRWD at 42.4x, $NET at 38.6x, $PANW at 24.2x, $DDOG at 19.5x and $SNOW at 16.3x. Growth still earns a higher multiple. The 44 names expected to grow revenue 20%+ a year over 3 years have a median of 5.2x. The 85 names expected to grow under 10% have a median of 2.6x. Even for the faster growers, the 5.2x median is below the floor. The market is paying up for very few names. We think that is right. Many software companies have slowing growth, high costs and no clear AI strategy. We would not buy the sector, or a cloud index, on valuation alone. In software, we focus on the few companies rebuilding their products around AI, and our SaaS Survival Scorecard tests key SaaS names against the pressure from AI agents.
@BrokenMoats 1 click

Broken Moats on X

$SNOW conference call is the bear case for application software companies. Their data infrastructure combined with coco and cowork on top increasingly makes SNOW a key player in data migrations, and data consolidation for their customers and a key hub to switch between models means SNOW has a seat at the table to be one of the most important and internal pieces of an AI stack....and as they become the permissions data holder with governance and api/mpc to internal and external partners, they can actually become the system of record across applications. This would allow you to use tools like cocoa inside to contextualize in human language what you want built, or even what data/answers you want and how you want that visualized.... Compare this to a Salesforce that is essentially becoming a database company silo to their specific domain by opening up their data to Claude to be the work engine. Eventually companies will increasingly want to stop interfacing with multiple applications to query and want to UI and query across a singular interface (originally thought to be an LLM like Claude, but with specific training and different inference costs / intelligence across models its more like the player presiding over the biggest pool of company data (snowflake, databricks) could become that central payer - less model lock, more flexibly, and central access point for models, data, queries and ui across functions. May not relegate a salesforce obsolete but significantly destroys their value when people access from Snow or even from an LLM like Claude were they lose the ui interface, and behavioral association and slight shared/learned network effects and become a database. Increases switching costs overtime and certainly destroys pricing (agent force consumption model is a step in the modern pricing setup, but start based models are dead, its not an if for most applications without highly defensible and proprietary data) $PEGA, $APPN, $PATH, $CRM, $PAYC are first pass through som of the more exposed names

Investor Letters

Letters that discuss SNOW.

Tickers on this page

Companies the stories above are also about, besides SNOW.