Snowflake Just Got $2 Billion. Is It Good for Shareholders?

At the close of its fiscal second quarter of 2025 (ended July 31), data company Snowflake (NYSE: SNOW) had more than $3.2 billion in cash, cash equivalents, and short-term investments. That's a huge cash position. But management apparently wanted an even bigger bank account.Last month, Snowflake's management announced a deal to raise between $2 billion and $2.3 billion. And at first glance, the move looks like a no-brainer. The company is getting this enormous amount of money at 0% interest. What's not to like?It's true that the rate is great for Snowflake. But there's no such thing as a free lunch. It turns out that the company is paying for this deal in other ways. And I believe shareholders should be aware of the terms here.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool