Apple vs. Snowflake: Which Warren Buffett Stock is a Better Buy in 2024? (2024)

FAQs

What is the stock price forecast for Snowflake in 2024? ›

It expects product revenue to only rise 26%-27% year over year in the second quarter of fiscal 2025, while analysts expect total revenue to only increase 24% for the full year. From fiscal 2024 to fiscal 2027, analysts expect revenue to rise at a CAGR of 23%.

Warren Buffett's stock purchases in the most recent quarter include Chubb Limited (CB) and Occidental Petroleum (OXY). HP Inc. (HPQ) and Paramount Global (PARA) are among Warren Buffett's stock sales in the most recent quarter.

"When I buy Apple, I know that Apple is going to repurchase a lot of shares," he said in 2018. And he likes to note how buybacks result in getting a bigger stake in the company without buying more shares. "The math of repurchases grinds away slowly, but can be powerful over time," Buffett said in 2021.

Snowflake has a consensus “Moderate Buy” rating overall. Of the 41 analysts covering the stock, 26 advise a “Strong Buy,” three recommend a “Moderate Buy,” 10 suggest a “Hold,” and the remaining two give a “Strong Sell” rating.

For fiscal 2025, Snowflake forecast product revenue growth of roughly 22% to $3.25 billion versus consensus estimates for 30% growth to $3.43 billion. In addition, Snowflake withdrew its fiscal 2029 target of $10 billion in revenue.

Key Points. Warren Buffett made his fortune by investing in individual companies with great long-term advantages. But his top recommendation for anyone is to buy a simple index fund. Buffett's recommendation underscores the importance of diversification.

To many investors' surprise, Buffett's secret stock was finally revealed in Berkshire's first-quarter filings. He has initiated a position in Chubb Limited (NYSE: CB), a property and casualty (P&C) insurance and reinsurance underwriter based in Switzerland.

Buffett began buying Apple in the first quarter of 2016, but there's no way to know exactly what his average share price was. But if you use the highest closing that quarter as a conservative estimate, it means that you would have paid $27.06 per share for Apple.

Is Apple stock a buy or hold? ›

Apple has a consensus rating of Moderate Buy which is based on 22 buy ratings, 11 hold ratings and 1 sell ratings. What is Apple's price target? The average price target for Apple is $207.72. This is based on 34 Wall Streets Analysts 12-month price targets, issued in the past 3 months.

Berkshire's stake in Apple fell by 22% to $135.4 billion as of March 31 from $174.3 billion at the end of 2023, even as the iPhone maker's share price fell just 11%. The conglomerate appears to have sold about 115 million shares, or 13% of its holdings in the quarter.

Key Points. Snowflake's latest earnings update was a mixed bag. Revenue continues to slow, and expenses are rising in a new era of computing. More patience may be required before Snowflake stock gains traction.

The average price target is $205.71 with a high forecast of $240.00 and a low forecast of $125.00. The average price target represents a 36.58% change from the last price of $150.62.

"It's possible that Snowflake saw several large customer migrations in [February and March] that resulted in a short-term spike in usage that then normalizes," Keirstead added, while maintaining a neutral rating on the stock but boosting his target price to $190 from $185.

Average Price Target

Based on 39 Wall Street analysts offering 12 month price targets for Snowflake in the last 3 months. The average price target is $208.00 with a high forecast of $260.00 and a low forecast of $125.00. The average price target represents a 27.53% change from the last price of $163.10.

Target Stock Price Forecast 2024-2025

The forecasted Target price at the end of 2024 is $207 - and the year to year change +45%. The rise from today to year-end: +29%. In the middle of 2024, we expect to see $168.

We forecast that gross margins will expand from 68% in fiscal 2024 to 80% in fiscal 2033. As the company attains customers, this will give it leeway to raise the cost of its offerings, especially after switching costs increase—which could eventually involve moving from a consumption model to a subscription one.