Even if the present bear market has made investing difficult, astute investors know that taking advantage of today's cheap pricing can lead to life-changing profits in the long run. These are 2 firms that we believe have a long runway for growth.
Snowflake
In September 2020, Snowflake (NYSE: SNOW) had the biggest IPO of any software company ever. Even though the stock has dropped more than 50 percent this year, it looks good for long-term investors. During the first quarter, the company added 40 percent more customers, and by April, it had more than 6,300 accounts. At the end of Q1, Snowflake had $2.6 billion in remaining performance obligations, which is an increase of 82% from the same time last year. Snowflake has been able to diversify its income by adding more customers and getting into new markets.
Analysts at J.P. Morgan think the stock could go up another 10% from where it is now. Brad Gerstner, the CEO of Altimeter Capital, said again that Snowflake's valuation was too high in 2021. The company is still getting a lot of new clients and making more money from the ones it already has.
The long-term growth trajectory of Snowflake looks to be as robust as ever, notwithstanding the possibility of a future recession slowing sales growth. Overall, Snowflake remains a fast-growing business.
MongoDB
Despite the probability of a slowdown or perhaps a recession in the second half of 2022, MongoDB (NASDAQ: MDB) is projected to remain steady. The company's revenue forecast for fiscal 2023 has been lowered due to macroeconomic circumstances, but it still anticipates double-digit year-over-year revenue growth.
Why MongoDB? Well, simply because modern organizations cannot run without databases, and this is not an investment that will be curtailed in the near future. The NoSQL database category is growing increasingly popular, and MongoDB has emerged as a leading contender. It is also important to note that MongoDB has a price target of $377.00 with a potential upside of 20%. The stock has a Moderate Buy consensus rating after receiving 14 Buy, 3 Hold, and 1 Sell ratings in the last three months.
Conclusion
IT organizations have prioritized digital transformation due to the secular move to cloud computing and software as a service, the coronavirus epidemic, and the necessary rush to install remote working capabilities. The increasing need for data bodes well not only for cloud computing but also for database management systems. Traditional databases, such as Oracle's, still have a role, but businesses like Snowflake (NYSE: SNOW) and MongoDB (NASDAQ: MDB) with excellent data-lake, data-warehouse, and data-marketplace services will emerge as winners.
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