Core Viewpoint - Snowflake (SNOW) is expected to report its fourth-quarter fiscal 2025 results on February 26, with revenue estimates indicating a year-over-year increase of 22.97% to $952.67 million, while earnings per share are projected to decrease by 51.43% to 17 cents [1][2]. Group 1: Financial Performance Expectations - The Zacks Consensus Estimate for revenues is pegged at $952.67 million, indicating an increase of 22.97% from the year-ago quarter's reported figure [2]. - The consensus mark for earnings has been stable in the past 30 days at 17 cents per share, suggesting a decrease of 51.43% from the year-ago quarter's reported figure [2]. - SNOW's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 35.39% [3]. Group 2: Key Factors Impacting Performance - SNOW has been facing increased GPU-related costs due to aggressive investments in AI initiatives, which are expected to keep margins under pressure [5]. - Competition from companies like Databricks is intensifying, leading to pricing pressure that may hurt profitability [5]. - However, top-line growth is anticipated to benefit from the growing adoption of Iceberg and Snowpark, along with increased traction for the AI solution, Cortex [6]. Group 3: Client and Market Position - As of the end of the third quarter of fiscal 2025, SNOW had over 1,000 deployed use cases and more than 3,200 accounts utilizing its AI and machine learning features [7]. - The company had 18 Global 2000 customers at the end of the third quarter, indicating strong momentum that is expected to continue [7]. - Snowflake shares have appreciated 15.2% year to date, outperforming the Zacks Computer & Technology sector's decline of 0.6% [8]. Group 4: Valuation and Market Sentiment - SNOW stock is currently trading at a premium, with a forward 12-month price-to-sales (P/S) ratio of 13.2X compared to the broader sector's 6.45X, suggesting a stretched valuation [11]. - The stock is trading above the 50-day and 200-day moving averages, indicating a bullish trend [14]. Group 5: Strategic Initiatives and Partnerships - Snowflake is benefiting from innovations such as Apache Iceberg, Hybrid tables, and Cortex Large Language Model, which are helping to win new clients [16]. - Partnerships with major players like Amazon, Microsoft, and NVIDIA enhance data interoperability and support the company's growth [16][17]. - The planned acquisition of Datavolo is expected to strengthen Snowflake's platform by enhancing support for structured and unstructured data [20].

Core Viewpoint - Snowflake's stock has seen a significant increase of 47% over the last six months, with an analyst upgrade to an outperform rating and a price target of $235, indicating a potential upside of 24% from the current price of $189 [1] Group 1: Stock Performance and Analyst Ratings - Wolfe Research analyst Alex Zukin upgraded Snowflake's stock to an outperform rating with a price target of $235, suggesting a 24% upside from the current share price of $189 [1] - The stock's price-to-sales multiple has nearly doubled recently, indicating a shift in valuation [2] Group 2: Revenue Growth and Product Outlook - Despite challenges such as a CEO change and increasing competition, Snowflake has launched new cloud products, including Snowflake Cortex, which is gaining strong adoption [3] - Management has raised its product revenue outlook for the full year, with product revenue growing 29% year-over-year in fiscal Q3, and guidance suggests the same growth rate for the full year [4] Group 3: Future Projections and Valuation - For Snowflake to reach the analyst's price target of $235, it must meet Wall Street's consensus estimate of $4.43 billion in revenue next year while maintaining its current price-to-sales multiple [5] - To sustain returns beyond 2025, Snowflake needs to continue innovating and improve margins, as its net loss has exceeded $1.1 billion on a trailing-12-month basis [6]

Group 1 - Snowflake Inc. (SNOW) is expected to report quarterly earnings of $0.17 per share, a decline of 51.4% year-over-year, with revenues forecasted at $952.67 million, reflecting a 23% increase compared to the same period last year [1] - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating analysts' reassessment of their initial projections [1] - Analysts predict 'Revenue- Product revenue' at $910.47 million, a change of +23.4% from the prior-year quarter, and 'Revenue- Professional services and other revenue' at $42.70 million, indicating a +16.6% change from the year-ago quarter [4] Group 2 - The estimate for 'Remaining performance obligations' is projected to reach $6.71 billion, compared to $5.20 billion from the previous year [4] - Analysts estimate 'Total customers' at 11,035, up from 9,437 year-over-year, and 'Customers with trailing 12-month product revenue greater than $1 million' at 572, compared to 461 in the same quarter last year [5] - The expected 'GAAP Product gross profit' is $642.35 million, an increase from $545.31 million reported in the same quarter last year [6] Group 3 - Snowflake shares have increased by +5.7% over the past month, outperforming the +2.2% move of the Zacks S&P 500 composite [6] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [6]

Snowflake Inc. (SNOW) ended the recent trading session at $184.96, demonstrating a -0.86% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.47%.The the stock of company has risen by 5.11% in the past month, leading the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 2.6%.The investment community will be paying close attention to the earnings performance of Snowflake Inc. ...

Snowflake (NYSE: SNOW ) is currently almost 20% more expensive than it was when my previous 'Strong buy' recommendation was published . The company reports its quarterly earnings soon, and I see several reasons for optimism. IComing from an IT background, I have dived into the U.S. stock market seven years ago by managing portfolio of my family. Starting managing real money has been challenging for the first time, but long hours of mastering fundamental analysis of public companies paid off and now I feel v ...

Snowflake Inc (NYSE:SNOW) stock was last seen 3% higher at $193.50 in pre-market trading, after Wolfe Research upgraded its rating to "outperform" from "peer perform" with a price target of $235. The analyst cited improving consumption trends, a better competitive environment among hyperscalers, and strong product momentum ahead of the cloud company's fourth-quarter earnings on Feb. 26. Fresh off its seventh consecutive weekly gain, SNOW already boasts a 21.5% year-to-date lead. The equity has added 48.9% o ...

As companies compete for dominance in the booming artificial intelligence (AI) sector, investment strategist Shay Boloor has highlighted what he believes is an undervalued stock in this space poised to catch investors’ attention.To this end, the expert pointed out that American cloud-based data storage firm Snowflake (NYSE: SNOW) is the next AI stock to watch, citing the equity’s underlying fundamentals, Boloor said in an X post on February 16.Boloor sees SNOW as the “engine for AI-driven data liquidity,” a ...

Core Viewpoint - Snowflake is showing signs of a potential bullish shift, primarily driven by its advancements in the artificial intelligence (AI) sector, despite recent stock struggles [1][2]. Group 1: Stock Performance - Snowflake's stock (SNOW) has gained 21% year to date, closing at $187.60, as it attempts to recover from an 18% loss over the past year [2]. - The stock is breaking out of a long-term descending trendline that has acted as resistance since early 2022, indicating a potential upward movement [4]. - Insider buying activity, including a $10 million purchase by a director and a $5 million purchase by the CEO, suggests growing confidence in the company's prospects [5]. Group 2: Financial Performance - In the most recent quarter ending October 31, 2024, Snowflake reported adjusted earnings of $0.20 per share, exceeding analyst expectations of $0.15, and revenue of $942 million, surpassing estimates of $897 million [6]. - The company experienced a 28% year-over-year revenue growth, although its net loss widened to $324.3 million compared to $214.3 million in the same period last year [7]. - Future revenue projections include $955.84 million for the January 2025 quarter, a 23.38% increase year over year, and $3.59 billion for fiscal 2025, reflecting a 28.09% growth [8]. Group 3: AI and Market Potential - Snowflake's AI capabilities are a significant driver of its growth, with over 1,000 deployed use cases and more than 3,200 accounts utilizing its AI features [1][10]. - The company’s AI-powered solutions allow users to interact with data using natural language processing, enhancing user experience and positioning Snowflake for increased interest [10]. - The total addressable market for Snowflake is expected to double to $342 billion by 2028, indicating substantial growth potential [10].

Snowflake (SNOW) shares have surged 21.7% year to date, outperforming the Zacks Computer and Technology sector’s appreciation of 1.6% and the Zacks Internet Software industry’s return of 19.3%. Snowflake’s prospects are robust, driven by a strong portfolio and an expanding partner base. The company has been benefiting from strong Artificial Intelligence (AI) adoption. At the end of the third quarter of fiscal 2025, SNOW had more than 1,000 deployed use cases. Currently, more than 3,200 accounts use SNOW’s A ...

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