CEO of AI Data Company Snowflake He doesn’t let the stock market distract him from his ambitions to become “one of the big tech companies in the world,” he told CNBC.
The company – a cloud data storage platform – made history when it became The largest software IPO ever When it went public five years ago, its stock price is currently rising amid the AI boom.
However, as investors flock to AI-related companies, fears of a bubble have emerged, making the market careful to distinguish between hype and reality in an attempt to avoid falling into a trap. Burning in case of withdrawal.
“You don’t control the stock price,” Sridhar Ramaswamy told “Squawk Box Europe” on Thursday. Snowflake shares rose 6.5% on Wednesday and are up more than 60% year to date.
“My focus is very much on creating value. We have to make dollars, one dollar at a time, so we focus on the quarter, we focus on the year, but much more than that, also on the value that we create with customers, or in the long run, the stock market will stabilize on its own,” he added.
His comments followed Snowflake investor Michael Spizer last week Selling shares With a net worth of more than $11 million, while Senior Vice President Vivek Raghu Nathan earned about $2.6 million in… Selling shares At the end of last month.
Ramaswamy declined to comment on individual sales but added: “I am not selling any shares, I am very supportive of the long-term value that Snowflake will create, and sales tend to be very modest.”
Following the line of increasing adoption
Ramaswamy said it was important for companies to keep their eyes on the prize — making AI useful and generating returns that way — and advised clients to do the same.
He stressed the importance of implementing AI gradually, partly because not all projects will succeed, but also because employees who fear AI will replace them may resist doing so.
“This is part of the nuance that executives need to know: Where is the most applicable technology? Some people think that AI is a technology that can cure all problems. I think that is a mistake. Sure, there is promise, but some areas will be more adaptable than others,” Ramaswamy said.
One of the key opportunities now is how quickly AI can accelerate the value that comes from data, Ramaswamy said.
“The change in time to value is also very fascinating. Will there be disruption along the way in the markets, in terms of how the stock market behaves? Absolutely. But I think the value that will come out of this AI revolution, if I may call it that, is very consistent, and we all have to continue to focus on that,” he added.
A market bubble – and its bursting – does not necessarily mean the end of the company. dead, Amazon and Google They all came out of the dot-com era and are among the most valuable companies in the world today.
But AI may not necessarily play out the same way the dot-com bubble did, according to Ashley McNeil of Vista Equity, especially if investors keep calm. He said on CNBC’s “Closing Bell.” It is important to have a “calculated” approach.
“Is this a bubble that will burst like it did in 1999? Or is this more like a balloon that we will see inflating and deflating as we go through the cycles?” MacNeil said.
“Given the longevity of this technology and given the fact that these are waves that will adopt this technology, I’m more inclined to believe that we’re not going to explode, we’re going to swell and deflate as this technology ebbs and flows,” she added.
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