Snowflake, Inc. (SNOW) has begun to gain ground after a rocky start to the year. Snowflake unperformed the S&P 500 over the past 2-years rising by approximately 37.5% compared to the S&P’s gain of about 39.6%. While hedge funds were selling, its overall growth has helped its ranking on the WhaleWisdom Heatmap rise to 20 from 37.

Snowflake is a technology company that provides a cloud-based data software platform to consumers worldwide to enable consumers to store, consolidate, and analyze information. Snowflake was known initially as Snowflake Computing, Inc. before being renamed to Snowflake, Inc. in 2019. Snowflake offers customers a flexible usage-based model to buy only what they need, allowing Snowflake to grow its revenue as its customers require more capacity. Overall, the technology sector saw a decline in early 2021, and Snowflake was caught in those winds of volatility. However, Snowflake ultimately began to rebound and navigate a steady upward climb.

Mixed Results from Hedge Funds and Institutions

Hedge Funds were actively selling the stock in the third quarter, and the aggregate 13F shares held by hedge funds decreased to approximately 99.5 million from 104.6 million, a change of about 4.9%. Overall, 35 hedge funds created new positions, 67 added to an existing one, 26 exited, and 51 reduced their holdings. In contrast, Institutions increased their aggregate holdings by about 9.7%, to 204.9 million from 186.8 million. Also, since going public in 2020, Snowflake’s 13F metrics showed slow momentum while its closing stock price fluctuated.

(WhaleWisdom)

Optimistic Revenue Outlook

Analysts predict an initial dip in earnings through to 2022, with an estimated loss of $0.08 in 2022, followed by some forward movement that would bring earnings per share to approximately $0.06 by 2023. Revenue estimates are very encouraging at roughly $1.2 billion by January 2022 and rising to about $2.0 billion by January 2023.

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Favorable Price Targets After Third Quarter Results

Analysts appear encouraged by the recent third-quarter results and have been raising price targets. Phil Winslow of Credit Suisse raised the firm’s price target to $465 from $455 and kept an Outperform rating on shares. Winslow noted that third-quarter results exceeded his expectations, and he believes Snowflake will continue to play an important role in the cloud-native data value chain. Morgan Stanley analyst Keith Weiss is encouraged by Snowflake’s potential for expansion and raised the firm’s price target to $344 from $295, maintaining an Equal Weight rating on shares. Joel Fishbein of Truist Securities raised his firm’s price target on the stock to $400 from $350 and kept a Buy rating on shares. Citi analyst Tyler Radke upgraded Snowflake to a price target of $470 from $299 following favorable third-quarter results.

Optimism Beyond 2021

While 2021 has had its share of challenging months for Snowflake, analysts appear optimistic for the future. The cloud computing industry has had opportunities for growth and expansion that Snowflake can leverage. Snowflake has already gained some upward traction in recent months, with the potential for more positive gains beyond 2021. The stock may not be a good fit for everyone at this time but could represent an excellent opportunity for patient investors.

Meta Platforms, Inc. (FB) saw growth slow over the past year; however, it still outperformed the S&P500 and rose by approximately 68.4% compared to the S&P’s gain of about 44.7%. However, hedge funds sold the stock in the third quarter, and this technology conglomerate slid on the WhaleWisdom Heatmap to a ranking of 36 from 13.

Meta Platforms, doing business as Meta, operates as a multinational social technology company. Formerly known as Facebook, Inc., Meta is the parent company of Facebook, WhatsApp, Instagram, and other subsidiaries. These applications are profitable for Meta through advertisements and data collection for marketers. Meta’s corporate rebranding occurred in October 2021. CEO and chairman Mark Zuckerberg reported the rebranding as a move to be a metaverse first and to clear up confusion over the parent company sharing a name with its primary social media application, Facebook. In addition to developing social media applications, Meta develops products for virtual and augmented reality, focusing on connecting people worldwide.

Hedge Funds Reduce Shares

Hedge Funds adjusted their portfolios, and the aggregate 13F shares held decreased to approximately $426.9 million from $432.6 million, a slide of about 1.3%. Overall, 36 hedge funds created new positions, 255 added to an existing holding, 48 exited, and 271 reduced their stakes. Institutions also sold and lowered their holdings by about 1.5% to $1.82 billion from 1.85 billion.

(WhaleWisdom)

Encouraging Multi-year Estimates

Analysts expect to see earnings rise, with increases in growth from December 2021 to December 2022 that could bring earnings per share to $13.96 by 2021 and $14.41 by 2022. Year-over-year growth is also estimated to bring revenue to approximately $140.0 billion by December 2022, up from an estimated $117.7 billion in December 2021. The long-term 13F metrics between 2006 and 2021 suggest that Meta’s investment potential remains strong.

(WhaleWisdom)

Analysts Share Favorable Ratings

Nicolas Cote-Colisson of HSBC Bank Plc upgraded Meta to a Hold from Reduce, maintaining a $300 price target, factoring a combination of regulatory risk and new business opportunities. UBS analyst Lloyd Walmsley gave Meta a Buy rating with a price target of $425, up from $416. Walmsley shared that the technology company is well-positioned to benefit from improved operating performance and expansion.

Bright Outlook

Meta’s earnings estimates for 2021 and 2022 are encouraging for investors. While growth may have recently slowed, the technology company is focused on becoming a leader in the metaverse, which could provide new opportunities for future revenue beyond its popular social media applications. The stock’s trends suggest a long-term opportunity for patient investors.

Bill.com Holdings, Inc. (BILL) experienced some volatility in the market over the past four months while also seeing some record growth. Hedge funds are buying, and the computer software company continues to outpace the S&P 500. Bill rose by approximately 83.9% compared to the S&P’s gain of about 28.0%, and Bill achieved a ranking of twelve on the WhaleWisdom Heatmap.

Bill provides cloud-based software for businesses to help them simplify and automate their back-office financial operations. The company has seen success with small and midsize companies opting for their end-to-end payment automation platform, Bill.com. Bill saw some negative impact in earnings throughout the coronavirus pandemic due to the business interruption and losses many customers faced. However, ultimately it seems that Bill has benefited from the transition of more businesses to automated processes during the pandemic. Bill continues to partner with many organizations such as financial institutions and accounting firms to provide banking and payment technology offerings and wealth management firms to support their clients with an automated and secure bill payment process.

Hedge Funds and Institutions Are Buying

Bill saw positive third-quarter activity from both hedge funds and institutions. Hedge funds increased their aggregate 13F shares held to approximately 28.9 million from about 21.5 million. Of hedge funds, 53 created new positions, 45 added to an existing holding, 16 exited, and 48 reduced their stakes. Institutions increased their aggregate holdings to about 94.3 million from 82.2 million.

(WhaleWisdom)

Optimistic Revenue Estimates

The 13F metrics between 2019 and 2021 suggest that Bill’s strong investment potential. However, analysts predict an initial dip in earnings through to 2023, bringing profits to an estimated $0.71 by June 2023. Revenue estimates are encouraging at approximately $540.5 million by June 2022 and rising to about $734.1 million by June 2023.

(WhaleWisdom)

Analysts Raise Price Targets

Many analysts view Bill as a stock to Buy. Jefferies analyst Samad Samana raised Bill’s price target to $350 from $300 and kept a Buy rating on shares, anticipating continued revenue growth. Canaccord Genuity analyst Joseph Vafi raised the firm’s price target to $366 from $284 and kept a Buy rating. Also, Peter Levine of Evercore ISI initiated coverage of the company with a $300 price target and an In-Line rating.

Bright Outlook

Bill’s performance is encouraging with strong 2021 year-to-date growth and hedge funds buying. Multi-year estimates speak to the stock’s long-term potential, and Bill has a strong position within the small and midsized business market. Analysts’ ratings and outlooks present an attractive opportunity for investors.

Visa, Inc. (V) saw a slowdown in growth in 2021 but still progressed up the WhaleWisdom Heatmap to a ranking of ten. Visa saw its stock rise by approximately 7.9% to date, and overall, the company underperformed the S&P 500’s gain of about 46.7%.

Visa is a financial services company that connects banks, governments, and various consumers and businesses through electronic payments. Visa facilitates electronic fund transfers and offers company-branded credit, debit, and pre-paid cards. Visa serves as an intermediary between merchants and financial institutions, generating most of its revenue from fees collected from financial institutions using its network. During the coronavirus pandemic, Visa has faced challenges such as fluctuations in transaction volume as consumer spending habits changed and the need to process a higher volume of disputed credit card charges. In the early stages of the pandemic, travel bans and stay-at-home orders dramatically curbed spending. They resulted in canceled vacations, business trips, and events that brought disputed credit charges by consumers and credits to Visa cardholders extended by some merchants. Visa continues to be a powerful force in commerce, particularly e-commerce, and the company has shown support for its customers by waiving many pandemic-related fees.

Hedge Funds Are Buying

Visa saw positive third-quarter activity from hedge funds, who increased their aggregate 13F shares held to approximately 427.6 million from about 422.9 million, a change of about 1.1%. Of hedge funds, 24 created new positions, 221 added to an existing one, 40 closed out their stakes, and 205 reduced their holdings. In contrast, institutions decreased their aggregate holdings to approximately 1.56 billion from 1.57 billion, a reduction of about 1.1%. Also, 13F metrics between 2006 and 2021 suggest that Visa remains on an upward path, with strong long-term investment potential for this global processor of digital payments.

(WhaleWisdom)

Favorable Outlook

While many financial service companies have been taking a hit during the pandemic, analysts are encouraged by the recent nomination of Jerome Powell for a second term as the Chair of the Federal Reserve. Visa has faced challenges from a current dispute over credit card fees with Amazon that has impacted its stock. Still, CFO Vasant Prabhu reported in November that he expects to reach a resolution with Amazon in the United Kingdom and hopes to continue their co-branded credit card partnership in the United States. Analysts James Faucette of Morgan Stanley is optimistic about new pricing agreements on the horizon between Visa and Amazon, maintaining an Overweight rating and a $280 price target on Visa shares. UBS analyst Rayna Kumar gave Visa a Buy rating and a $275 price target, noting Visa’s attractive valuation and encouraging global market share gains.

(WhaleWisdom)

Optimism Beyond 2021

Visa continues to have strong brand recognition and play an important role in global commerce.

Despite weathering challenges of the pandemic and transaction fee negotiations, Visa is likely to continue to rebound into a stronger position over the next few years. With hedge funds buying and encouraging views shared by analysts, Visa presents as an opportunity for investors.

Wells Fargo & Co. (WFC) has rebounded slowly from the 2020 coronavirus sell-off but was still added to the WhaleWisdom Whale Index 100 on November 17, 2021. While Wells Fargo saw its stock decline by approximately 10.0% over the past 2-years, resulting in the financial services company underperforming the S&P 500’s gain of about 46.3%.

Wells Fargo is a diversified financial services company with segments in community and wholesale banking in addition to wealth and investment management. The company provides various banking, insurance, mortgage, financial, and investment services. While the Financial Services Sector has had to adapt to changing customer needs during the coronavirus pandemic, it faired overall well. However, Wells Fargo is also still dealing with the fallout of a mortgage fraud scandal that became widely publicized in 2016. Beyond fines and penalties, the company continues to navigate regulatory restrictions and improve compliance to restore regulatory and consumer confidence.

Hedge Funds and Institutions Are Selling

Hedge funds and institutions were cautious in the third quarter, with both actively selling Wells Fargo’s stock. Hedge funds decreased their aggregate 13F shares held to approximately 522.4 million from about 547.8 million. Of hedge funds, 33 created new positions, 144 added to an existing holding, 43 exited, and 138 reduced their stakes. Institutions decreased their aggregate holdings to about 2.85 billion from 2.91 billion. Also, the 13F metrics between 2001 and 2021 suggest that while the company may have its occasional setback, it still maintains forward momentum and, therefore, long-term investment potential.

(WhaleWisdom)

Growth Estimates Vary

Analysts predict challenges in 2022, with both revenue and earnings losing ground but later rebounding in 2023. Year-over-year revenue growth is expected to be $76.0 billion in 2021, $72.2 billion in 2022, and $74.9 billion in 2023. Growth could bring earnings per share to $4.27 by 2021, slipping to $3.69 by 2022 and rising to $4.23 by December 2023.

(WhaleWisdom)

Conservative Views

The financial sector continues to see gains and, more recently, was positively impacted by the nomination of the Federal Reserve Chairman Jerome Powell for a second term. Even with investor confidence strengthened by Powell’s continuation as Chairman, it is understandable that some analysts would take conservative stances on the stock. Scott Siefers of Piper Sandler & Co. kept a Neutral rating on the shares while raising the firm’s price target on Wells Fargo to $48 from $45. Siefers appeared encouraged by the company’s third-quarter performance, as earnings came in above estimates.

Long-term Optimism

Wells Fargo has seen its share of challenges over the past few years yet has shown promising growth in 2021. Despite facing ongoing regulatory scrutiny and restrictions, the company made its way to the WhaleWisdom Whale Index and followed a slow upward trajectory that may be appealing to patient investors.