Wall Street Made A Mistake - Snowflake Is On Sale #stockmarket #investing

Summary

The script discusses the potential of the software company Snowflake to revolutionize industries through artificial intelligence, arguing that Wall Street misunderstands this potential. It focuses on Snowflake's CEO, Frank Slootman, and his replacement, Sher Rehman, who previously led Google AdWords, transforming digital advertising. The script contends Rehman can similarly lead the use of AI and data to replace human roles and decisions across sectors like insurance and government, massively improving efficiency, though markets dropped Snowflake's stock on shifted short-term spending priorities. Overall it predicts Rehman and Snowflake will change how commerce functions globally.

Takeaways

• 😀 Snowflake's stock dropped 20% after earnings, but the author believes this was a mistake by Wall Street
• 👨‍💻 The author compares Snowflake's CEO to legendary tech innovators like Gates, Jobs, Page, Brin etc.
• 📈 Snowflake is investing heavily to transition businesses to AI-driven decisions instead of human decisions
• 😎 The author believes Snowflake's tech will bring efficiency, reduce fraud/waste, and make better decisions
• 🤖 Snowflake's tech aims to replace human roles/jobs with AI and data-driven decisions
• 🔢 Snowflake posted strong revenue growth but also higher expenses, leading to losses
• 📉 Wall StreetAnalysts forecast higher revenue growth than Snowflake delivered
• 👷‍♂️ Snowflake plans to hire 1,000 more employees including engineers to build new AI systems
• 💡 The author connects Snowflake's potential to revolutionize business decisions to the prior digital revolution
• 💰 The author recommends buying more Snowflake stock due to the market underestimating its potential

Q & A

Who is the key person mentioned that will lead the AI revolution according to Carrie?

S Dar, Remi (likely referring to Shardar Sharma, CEO of Snowflake).

What past technology leaders is Shardar compared to in terms of influence?

Bill Gates, Steve Jobs, Serj and Larry, Jeff Bezos and Mark Zuckerberg.

What industry did Carrie used to work in that gives her insight into potential applications of Snowflake's technology?

Carrie used to work in the financial advisor industry.

What specific Snowflake product announcement caused their stock price to drop 20%?

Snowflake announced they would be increasing expenses by $90 million without a comparable increase in revenue projections. They also announced hiring 1,000 additional employees.

How much revenue and expenses did Snowflake have recently?

$2.8 billion in revenue and $2.99 billion in expenses, for a $20 million loss.

What functions does Carrie predict AI can optimize in industries like insurance and government?

Determining valid insurance claims, reducing fraud and graft in government contracting.

What change does Carrie think the new Snowflake employees will drive?

The new engineers will build systems to replace many of Snowflake's existing staff, transitioning the company towards AI.

Why does Carrie think Wall Street misunderstood Snowflake's announcements?

They don't understand AI and its transformative potential enough to see the long-term opportunity past short-term cost increases.

How does Carrie continue developing her investment ideas?

She discusses investments every Friday with her paid membership community to get additional perspectives.

What previous Snowflake leader does Carrie say found the limits of his capabilities to lead the AI revolution?

Frank Slootman recognized his limits and stepped aside, allowing Snowflake to bring on Shardar Sharma instead.

Outlines

00:00

😕 Wall Street misunderstands Snowflake and AI

Paragraph 1 explains that Wall Street misinterpreted Snowflake's earnings report and stock drop. Snowflake is investing heavily in AI to drive efficiency and replace human roles. The CEO previously led Google Ads and can replicate this AI transformation across industries.

05:01

😲 Snowflake aggressively investing for AI-driven growth

Paragraph 2 highlights that Snowflake is substantially increasing expenses for hardware, software, and sales staff to fuel AI product development. This will enable data-driven automated decisions to replace inefficient and biased human decisions across sectors.

10:03

💡 Snowflake CEO will drive next wave of AI innovation

Paragraph 3 asserts the Snowflake CEO will be regarded alongside tech luminaries for spearheading the next generation of AI. Snowflake's product strategy is misunderstood but will reduce inflation, create efficiency, and promote harmony.

Keywords

💡Artificial Intelligence

Artificial intelligence (AI) refers to computer systems that can perform tasks that typically require human intelligence. In the video, the speaker argues that AI is going to revolutionize industries by replacing many human roles and decisions with automated data-driven decisions. This will increase efficiency and reduce costs, fraud, and bias in areas like insurance, banking, manufacturing, etc. Snowflake, and its new executive Shar Remini, will be key players in this AI revolution across all of commerce.

💡Snowflake

Snowflake is a cloud data platform company that the speaker believes is poised to become an iconic leader in the artificial intelligence space. He argues that Snowflake's hiring of Shar Remini, an AI expert from Google, signals their ambition to replace human roles and decisions across industries with optimized, unbiased AI.

💡Digital Revolution

The speaker compares the coming wave of artificial intelligence to the previous digital revolution in the 1990s/2000s led by companies like Google, Facebook, and Amazon. Those companies transformed industries by teaching consumers new digital ways of interacting. Similarly, AI promises to revolutionize industries by replacing human roles.

💡Wall Street

After Snowflake reported earnings, their stock price dropped 20% because Wall Street investors underestimated the long-term potential of the company's pivot into artificial intelligence, instead focusing narrowly on short-term cost increases.

💡Decision Making

A key promise the speaker sees in AI is the replacement of biased and inconsistent human decision making in areas like insurance claims, financial services, manufacturing, and government administration. Automated AI decisions will be faster, fairer, and optimize for efficiency rather than self-interest.

💡Commerce

The speaker argues that artificial intelligence will fundamentally transform commerce, replacing the need for vast numbers of human roles across industries with optimized automated decisions. This will reduce costs and inefficiency while benefitting consumers.

💡Data

Artificial intelligence systems rely on large amounts of data to train algorithms and drive automated decisions. The speaker gives the example of how financial advisors once relied solely on human analysis, but AI can now optimize decisions by comprehensively processing volumes of data.

💡Efficiency

A common theme is how AI promises to dramatically increase efficiency in areas bogged down by human bureaucracy, bias, graft, and inconsistent decision making. By relying strictly on data-driven decisions, AI can cut waste and optimize output.

💡Future

The speaker emphasizes that artificial intelligence represents the next major shift in how commerce, government, and other complex systems function. Just as digital innovation changed the early 2000s, AI will shape the future by automating an ever-increasing sphere of human activity.

💡Revolution

This echoes the broader argument that the rise of optimized and unbiased AI represents a revolution on the scale of the digital revolution before it. Entire industries stand to be remade as data and algorithms replace legacy human roles and bureaucratic processes.

Highlights

Snowflake recognizes that AI will replace humans in many jobs, similar to the digital revolution in 2000

Snowflake's CEO could be compared to legendary tech leaders like Bill Gates and Mark Zuckerberg

Snowflake aims to use AI to make decisions in business more efficient, with less fraud and problems

The CEO led Google's AdWords, transforming digital advertising from a $1.5B to a $100B industry

Snowflake will leverage AI and data to replace human decision makers in many industries

This will increase efficiency and reduce things like insurance fraud

Snowflake spends what's needed to position itself as a leader in AI for business decisions

Wall Street misinterpreted Snowflake's earnings and plans, not grasping the AI potential

Snowflake is hiring engineers to build systems to replace many current employees

AI business decisions could greatly reduce government waste and graft

Wall Street rewards short term metrics, not seeing Snowflake's long term AI vision

Super Micro and Dell show growing computer infrastructure demand driving growth

Snowflake's CEO can lead the transition from human to AI-driven business decisions

Snowflake drop shows Wall Street doesn't grasp AI potential to transform business

Invest in understanding innovations like Snowflake's before the market catches on

Transcripts

this time Wall Street got it wrong or at

least they aren't farsighted enough to

see what is actually happening with

snowflake uh snowflake did their annual

report um or quarterly report earlier

this week and the stock dropped by

20% uh that was a mistake and it's

because they don't recognize exactly

what is happening they don't totally

understand how AI works and snowflake is

on sale and snowflake will quite

possibly become one of the icons of the

future relative to the use of artificial

intelligence and it's all driven by

snowflakes

recognition that AI is going to replace

human beings much as um the digital

revolution of

2000

created a new way for consumers to

consume products to to interact in many

facets of the world uh the key to this

is uh s Dar

Remi I know I screwed his name up but

you know who he is he is in my mind he

is going to be viewed comparable to Bill

Gates Steve Jobs Serj and Larry uh Jeff

Bezos and Mark Zuckerberg they are the

people who came and taught us how to use

digital uh to make our lives better to

make our worlds more efficient they

taught us that we adapted to it and we

use then

digital to to make us more efficient in

our world such as I use digital to

communicate with you I was unable to do

that until Google taught me how to do it

through through YouTube well we have now

moved into the era where uh digital is

going to teach us how to compute and

that is to say it's going to teach us

how to replace people using digital to

make better decisions and and think of

it in in this area in in the world of

insurance banking travel entertainment

real estate manufacturing for every face

that you engage in those Industries

there's at least 20 people behind doing

the support work to make what you want

to happen to happen What snowflake is

going to do is to replace all those

people uh they're going the the decision

makers who decided whether or not um

your insurance claim was valid is going

to be eliminated because all that is

going going to happen is some someone is

going to gather a little more data as to

what happened to to you and your uh as a

result of a tornado and the decision

then will be made through digital

analysis rather than human analysis

which will make it much more efficient

and which will make it much much less um

fraud and and whatever involved in it

and will make it work better

the reason Shar is such a key player is

he was with Google for 15 years and he

was in charge of Google AdWords and and

if you think about how Google AdWords

changed the advertising industry that we

don't have advertising agencies anymore

um the the Google knows more about

someone's customers than than the the

the the the manufactur ERS the sellers

whatever they know more about us than

our spouses know about us okay so they

have replaced the advertising industry

as as has Mark with with Facebook as has

Jeff with with Amazon they've replaced

the advertising industry and and shadar

is the guy who did it he took it from a

$1.5 billion industry to a00 billion

industry and then he woke up one day and

formed a company that said I can do this

in every aspect of of Comas and he

formed a company and eight months ago

that company was bought by by Snowflake

and they are now going to replace man

with digital okay so with that being

said then why did their price go down

20% this week well because Wall Street

got it wrong

understand they they they projected that

they were going to grow their revenues

um and and they they also said they were

going to add 1,000 employees

okay snowflake doesn't make any money

okay in fact they had revenues of 2.8

billion they had expenses of

2.99 billion so they had a loss of $20

million they then came Mountain said

that we are going to spend this next

year an extra $50 million on GPU chips

we're going to spend another $10 million

on uh cost of product and then we're

going to spend $30 million in increased

compensation for our Salesforce so

they're increasing their

expenses by $90 million but not

increasing a comp a a comparable amount

in sales okay then as I said they said

they're going to raise their employees

by a thousand currently they employ

5,884 people so that's an increase in

their sales force by

177% what's happening they're going to

war they're basically saying we're going

to restructure our company and we're

going to spend what we have to to take

us into the next generation of

artificial intelligence running

businesses so all the data I used to be

in the financial financial advisor

business we had armies of people behind

us making decisions based on the data

that we fed them many times they made

wrong decisions and thus um people

didn't have their their retirement funds

grow like they wanted to because

individuals were making human

decisions snowflake is going to take

that out of the equation they are going

to have those decisions made by the most

intelligent data available to Mankind

and made expediently you won't talk to a

person on the telephone you will get on

the phone and and they will ask you what

language you want to speak and they will

take on the conversation this will make

everything more efficient think about if

you put that into our government where

there's so much graft where there's so

much uh influence being pedal and take

all those decisions out of human being

hands and make them those decisions

based on what's best for our country our

citizens and therefore they make good

decision you know you I can remember one

time that some I read something that a

toilet seat on a a fighter on a on a a

cargo plane cost something like

$10,000 well that's because all the

graft that's involved in it all the

paperwork that goes If you eliminate all

those people touching that paper all the

influence that says hey uh you'll find a

new shotgun in your car if you buy the

toilet seat from me you'll you'll you'll

see that this is a major change in how

Commerce will take place in the world in

the future

and Wall Street didn't understand it all

Wall Street saw was we're going to incre

our increase our expenses by $90 million

we're not going to have we're going to

have a 6% increase in in our Revenue

which will not offset that and then

we're going to hire a thousand new

people well guess what's going to happen

and who who are those thousand people

they're Engineers they're the people who

are going to build the system to replace

the other five

884 people that they currently have on

staff that's what's happening in our

world in our world and and Wall Street

doesn't recogniz Wall Street does not

understand artificial intelligence if

they

did they would be

rewarding snowflake with a 20%

bump okay we saw today that the computer

infrastructure structure is driving the

economy right now uh we saw Dell go up

30% because they had some extraordinary

orders because Jensen sold them uh some

gpus to put into their computers so that

the the the shortage of computers from

Super Micro computer could be picked up

in part by Dell that's why Dell is up

once that's done that's done but what

comes behind it

is the change in our world and the the

the the movement away from man making

good bad indifferent biased decisions to

good decisions made by

compute and

snowflake had the insight and the

courage to go and hire the man who can

make it happen I can't pronounce his

name I won't try to you can read it

snowflake is up a little bit

today I'll buy

more because the world doesn't

understand that this may take a year but

that man is going to be standing next

to Bill Gates Steve Jobs Serj and Larry

Jeff basos and Mark he

is he is one of the

those who will be

recognized as

innovators for the future I'm Carrie

grink I'm a retired financial advisor

there's a lot of things I don't do well

uh but what I've learned I can do well

is connect the dots I can I can look at

something and say that doesn't make

quite sense to me so if it doesn't make

sense what what am I missing and I I

listen to this all the first time uh and

and I believe that that uh Frank slotman

got pushed to the side I don't think he

did after I listened to it a third and a

fourth time Frank recognized he did what

he could but he needed to pass the Paton

on and he he took the the data and

taught people how to interpret it and

now someone has to come in and teach

data how to replace the people how how

data can think like humans to make

decisions without bias without prejudice

and and make good sounds decisions that

create efficiency and economy that

reduce inflation rather in rather than

increasing

prices that brings Harmony in into a

very difficult world right now um I'm

really kind of scared of what is

is festering under the

surface uh this is a positive thing

we've got to look for positive

things you you dig in you learn

who

Shar ra renami is and what is PED agree

is and you see if you don't believe with

me Wall Street got it wrong I'm Carrie

grm I'm I'm the chief I guess of the

best of us investors

tribe uh later this afternoon this is

Friday I will have this discussion with

my tribe members we have a stock talk

every Friday a zoom call which if you

can't make the call you can access the

the recording of it um and we'll discuss

this in detail and they'll have an

understanding then they'll ask questions

and we'll hash it out how did I come

across this well when I saw the the drop

in the stock I went to the earnings call

and then Brian Brian is a young man from

um Nashville he's he's a a school

teacher High School school teacher and

and coach and he says Carrie do you

remember I sent you a a video of

Shamar sha sh shadar

shadar U being interviewed on CNBC a

year about a year ago when he made the

transition into Snowflake and I said

yeah I do remember it but I need to go

back and watch the video that's how I

learn that's how I stay ahead I have a

tribe I have a group of people who

subscribe who pay dues okay and we work

together to make better investment

decisions if you'd like some help get on

the bus we have a discount by the way uh

of uh 50% you'll find that in the

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