Snowflake at a Crossroads: will Frank Slootman return as the CEO?

Unhappiness all around as short sellers circle the pond

In this report, we discuss Snowflake after engaging with several top executives from the company, its competitors, and key investors. Our main conclusions from these discussions are:

• The company's fundamentals are considered weak, potentially valuing it at half or less of its current market price due to slowing growth, low profit margins, and a vague strategy.

• Several customers looking to cut contracts by 20-30% by reducing usage or additional discounts to save on the “Snowflake tax”

• The board is pressing for Slootman's return. Slootman may be the only friend Sridhar has in this board.

• Sridhar may not be the right fit for the leadership role; he seems to require guidance rather than providing it.

• Short sellers are eyeing the situation but remain cautious, fearing substantial losses if Slootman were to return.

From a trailblazing startup to a cloud computing titan, Snowflake Inc. has experienced a meteoric rise since its inception in 2012. Lauded for its innovative technology that separates …