Snowflake's Massive Losses Are Getting Worse
The data cloud company's ambitious plan to integrate artificial intelligence into its products is hurting Snowflake's bottom line.
An investment in growth stock Snowflake (NYSE: SNOW) is a bet that the company can achieve impressive economies of scale as it grows. Today, the company regularly reports big losses. But investors hope that losses will shrink both in absolute terms and as a percentage of sales over time. Looking even further out, Snowflake bulls are betting that losses will eventually swing to significant profits.
But here's the problem: the data cloud company's latest results show losses getting much worse. Sure, Snowflake's top line is looking good. But what good is strong top-line growth if it's not helping the bottom line improve?
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