Stephanie Link Buys More Palo Alto, Discusses Snowflake & UnitedHealth Strategies

Snowflake's Strong Performance

• 🚀 Snowflake reported a strong quarter with earnings growth of 71% and revenue growth of 26%.
• 💡 Product revenue growth exceeded expectations at 28%, driven by the CEO's strategy of launching new capabilities, with 125 new features introduced this quarter.
• 📈 Operating margins improved by 300 basis points, and the company provided better guidance for product revenue growth.
• 💰 While not cheap, Snowflake is considered at the forefront of data mining, AI, cloud, and cybersecurity.

Stephanie Link's Palo Alto Networks Investment

• 📌 Stephanie Link purchased more Palo Alto Networks stock, viewing its prior 7% drop as an overreaction.
• ✅ The company beat expectations on total revenue (up 15%) and next-gen security ARR.
• 🎯 Despite not providing fiscal year 2026 guidance, Link believes the fundamentals are strong, making it one of her top three technology positions.

UnitedHealth Strategy Amidst Volatility

• ⚠️ Link acknowledges UnitedHealth is experiencing volatility and is not a quick fix, expecting it to remain so until new guidance is issued.
• 💰 She added to her position, believing in the company's earnings power of $20 per share this year and an estimated $25 per share for next year.
• 📊 At 12 times earnings (or 8 times with cash), she sees the stock trading at historically low levels, even with conservative assumptions for Medicare Advantage margins.
• 🤝 Insider buying, including a significant purchase by the CEO, reinforces her conviction in UnitedHealth as the industry leader with substantial size and scale, requiring a longer-term investment horizon.