Cash-Heavy Stocks to Watch: Roku, Zeta Global, and Snowflake

Roku and Zeta Global have weak business models and inconsistent cash flow, making their cash-heavy balance sheets less valuable. Snowflake stands out with high new contract wins, strong customer loyalty, and 24.5% projected revenue growth.

Title: Roku and Zeta Global's Cash Flow Woes vs. Snowflake's Strong Revenue Growth

Roku and Zeta Global have been facing challenges with weak business models and inconsistent cash flow, making their cash-heavy balance sheets less valuable. In contrast, Snowflake has shown remarkable resilience with high new contract wins, strong customer loyalty, and a projected revenue growth of 24.5% [4].

Roku's financials are currently unavailable, but its stock has shown promising growth, rising 26.7% year-to-date. The company's advertising revenue momentum remains a key driver, with platform revenue jumping 18% year over year to $975 million in the second quarter of 2025 [2]. However, Roku faces stiff competition in the ad industry from giants like Netflix and Disney, which have rapidly scaled their ad-supported services [2].

Zeta Global, on the other hand, has been struggling with cash flow issues and a weak business model. Its stock has underperformed, and the company has been facing challenges in maintaining consistent revenue growth [1].

Snowflake, however, stands out with its strong performance. In fiscal 2025, the company reported $3.626 billion in revenue, a 29.21% year-over-year increase, driven by both traditional data warehousing and AI-specific services [4]. Snowflake's AI infrastructure market growth and strategic investments in AI tools like Cortex AI and Arctic models position it to capture a significant share of this expanding market [4].

While Snowflake's valuation is high, with a forward P/S ratio of 12.93x, its strong customer loyalty and enterprise AI adoption trends justify its long-term growth potential [4]. The company's 125% net revenue retention rate and $6.9 billion in remaining performance obligations (RPO) signal strong recurring revenue potential [4].

In conclusion, while Roku and Zeta Global face challenges with weak business models and inconsistent cash flow, Snowflake's strong revenue growth, high new contract wins, and customer loyalty make it a more attractive investment opportunity.

References:
[1] https://www.nasdaq.com/market-activity/stocks/roku/financials
[2] https://www.nasdaq.com/articles/rokus-ad-growth-outpaces-ott-market-revenue-momentum-sustainable
[3] https://finance.yahoo.com/news/snowflake-snow-soars-21-highly-183135521.html
[4] https://www.ainvest.com/news/snowflake-ai-driven-growth-valuation-justification-2508/