• Snowflake (SNOW) stock may have gone too far for a while, but has pulled back to a nice price.
• The company’s innovative spirit continues to manifest through Snowflake’s data cloud product offerings.
• Investors should buy the dip while the Snowflake share price is depressed.

Source: Sundry Photography / Shutterstock

Headquartered in Montana, Snowflake (NYSE:SNOW) cloud-based infrastructure company that offers solutions for data warehousing, sharing and more. SNOW stock is definitely worth buying at the current share price.

With over 5,900 customers, Snowflake is a mainstay among cloud service providers. Many investors are interested in getting exposure to great businesses in the cloud, and Snowflake is at the top of the heap with 184 million-dollar clients as of Jan. 31.

Even while the company continues to prove itself as an innovator, the Snowflake share price doesn’t fully reflect its true value. This window of opportunity could close in the near future, so starting a long position in Snowflake could provide excellent returns if you start today.

What’s Happening with SNOW Stock?

Going back to the beginning, SNOW stock opened for public trading on Sept. 16, 2020, at $245. That’s astounding, considering that the offering had previously been priced at $120.

The stock was red-hot for a while, and peaked at $405 in November of last year. A cooling-off period ensued, however, and today you can purchase shares of Snowflake at summer 2021 prices.

This correction in SNOW stock was perfectly normal and healthy, as it probably had gone up too fast and too far. Do Snowflake’s financials justify a share-price comeback, though?

Indeed, they do. During 2021’s fourth quarter, Snowflake generated $359.6 million in product revenue. That figure represents 102% year-over-year growth. That’s literally double the prior-year quarter’s number.

Regarding the company’s remaining performance obligations in Q4 2021, Snowflake reported $2.6 billion, representing 99% year-over-year growth. Again, basically a double.

For the first quarter of fiscal 2023, Snowflake remains optimistic with the expectation of $383 million to $388 million in product revenue. That would signify year-over-year growth of 79% to 81%, if it actually happens.

New Horizons in Data Cloud

With fiscal figures like those, one should expect Snowflake to be quite proud of its accomplishments. Yet, great businesses are never content unless they’re constantly innovating.

Truly, Snowflake is pushing the boundaries of where and how the data cloud can be applied. For example, the company recently launched its Retail Data Cloud product.

This, according to the company, “empowers retailers, manufacturers, distributors, consumer packaged goods (CPG) vendors, and industry technology providers, to leverage their own data, access new data, and seamlessly collaborate across the retail industry.”

Whether it’s for manufacturing, purchase orders, inventory or practically any other aspect of business that requires data storage and access, Snowflake’s Retail Data Cloud can help retail companies to optimize and modernize their operations.

On top of that, Snowflake has also announced the launch of its Healthcare & Life Sciences Data Cloud. With this, healthcare providers can “deliver improved patient outcomes, optimize care delivery, enhance clinical and operational decision making, accelerate clinical research and time-to-market, and more.”

Think about it: health data volumes for healthcare providers are vast and complex. These businesses can’t be expected to manage these data volumes on their own.

Healthcare & Life Sciences Data Cloud can come to the rescue. This product is a feature-rich, cross-cloud data platform that enables healthcare businesses to securely centralize, integrate and exchange data in the cloud.

What You Can Do Now

Clearly, Snowflake is pulling in robust revenue and continuing to develop game-changing products and services.

Meanwhile, SNOW stock is far below its prior peak price. This presents a terrific opportunity for investors who want immediate cloud market exposure.

With this in mind, traders can start a position in Snowflake at the current price. Then, they can average down gradually if the stock drops.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.