Latest news with #SNOW
Yahoo
15-07-2025
- Business
- Yahoo
Snowflake Inc. (SNOW) Outperforms Broader Market: What You Need to Know
In the latest close session, Snowflake Inc. (SNOW) was up +1.08% at $213.12. The stock's change was more than the S&P 500's daily gain of 0.14%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.27%. Heading into today, shares of the company had gained 1.28% over the past month, lagging the Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97%. Analysts and investors alike will be keeping a close eye on the performance of Snowflake Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.26, indicating a 44.44% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.09 billion, indicating a 24.91% increase compared to the same quarter of the previous year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.06 per share and a revenue of $4.52 billion, representing changes of +27.71% and +24.57%, respectively, from the prior year. Investors should also note any recent changes to analyst estimates for Snowflake Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system. The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.03% higher. At present, Snowflake Inc. boasts a Zacks Rank of #3 (Hold). From a valuation perspective, Snowflake Inc. is currently exchanging hands at a Forward P/E ratio of 198.37. This indicates a premium in contrast to its industry's Forward P/E of 27.71. Investors should also note that SNOW has a PEG ratio of 11.77 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 2.15 at the close of the market yesterday. The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 65, putting it in the top 27% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snowflake Inc. (SNOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-07-2025
- Business
- Yahoo
Salesforce's Data Cloud ARR Soars 120%: Is It the Next Sales Lever?
Salesforce, Inc.'s CRM Data Cloud is showing rapid growth, with annual recurring revenues (ARR) soaring 120% year over year to cross the $1 billion mark in the first quarter of fiscal 2025. The platform, which helps companies bring together and organize their customer data from various sources, surpassed 22 trillion records in the last reported quarter. In the first quarter, nearly 60% of Salesforce's top 100 deals included both Data Cloud and artificial intelligence (AI) features. Of all the new Data Cloud bookings, half came from existing customers, suggesting strong demand and client satisfaction. These numbers depict that Data Cloud is becoming a key part of Salesforce's broader platform. Data Cloud is also closely tied to Agentforce, Salesforce's new AI-based product. Together, they form the core of Salesforce's push into digital labor and intelligent automation. For AI agents to work well, they need quality data, and that's where Data Cloud plays a big role. Salesforce is also using Data Cloud internally to boost efficiency. The platform has helped the company reduce lead routing time from 20 minutes to 19 seconds in Slack. We opine that if Salesforce can continue to deliver results with Data Cloud, it could become a major growth driver for the company in the years ahead. As Salesforce's Data Cloud gains momentum, it faces tough competition from Microsoft Corporation MSFT and Snowflake Inc. SNOW, both active in enterprise data management. Microsoft offers a strong alternative through its Azure Data services, which integrates its Power Platform, Dynamics 365 and Copilot AI tools. Microsoft has the advantage of broad enterprise reach and seamless integration across its ecosystem. Many businesses already use Azure for cloud storage and processing, making Microsoft a natural choice for managing and using enterprise data. Snowflake is another major competitor, known for its powerful cloud-based data warehouse. Unlike Salesforce, Snowflake focuses only on data, allowing companies to store, process and share large volumes easily. It also supports multiple clouds and has strong analytics tools. Shares of Salesforce have plunged 18.1% year to date against the Zacks Computer – Software industry's rise of 16.5%. Image Source: Zacks Investment Research From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 23.07, significantly below the industry's average of 34.23. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Salesforce's fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 10.8% and 11.5%, respectively. Estimates for fiscal 2026 and fiscal 2027 have been revised upward in the past 30 days. Image Source: Zacks Investment Research Salesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT) : Free Stock Analysis Report Salesforce Inc. (CRM) : Free Stock Analysis Report Snowflake Inc. (SNOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-07-2025
- Business
- Yahoo
Snowflake Stock Rides on Cortex AI Adoption: Can the Growth Continue?
Snowflake's SNOW Cortex platform is gaining momentum as enterprises accelerate investments in AI-native applications. Cortex is reported under Snowflake's product revenue and is a key catalyst driving platform growth. Product revenues were $996.8 million in the first quarter of fiscal 2026, up 26% year over year. The figure beat the Zacks Consensus Estimate by 6.71%.Cortex is designed to support both internal workflows and customer-facing applications. The platform lets users build AI tools using plain language, pull answers from company data and set up simple automation to respond to queries. It is built to help teams work more efficiently with AI inside Snowflake's secure platform enhancements are driving momentum in Cortex. Cortex AISQL enables users to query enterprise data using natural language, while Knowledge Extensions allow organizations to ground large language models in company-specific context. Cortex access to foundation models like Meta's Llama 4 and OpenAI via Azure, giving teams flexibility to build custom AI applications without moving data outside additions and enhancements are gaining traction among enterprise teams. Kraft Heinz is leveraging Cortex Agent to automate internal workflows and reduce response times, reflecting rising demand for in-platform AI assistants. Luminate Data is using Cortex to improve retail analytics for its clients, implying platform versatility across verticals. Cortex surpassed 5,200 weekly active accounts during the reported quarter, underlining growing usage as enterprises expand AI adoption within Snowflake's ecosystem. Snowflake's Cortex platform is facing growing competition from AI and ServiceNow NOW, both of which are expanding their presence in the enterprise AI assistant continues to enhance its Generative AI Suite, offering domain-specific copilots and workflow tools tailored to industries like defense, manufacturing and energy. With a strong focus on retrieval-augmented generation and model flexibility, is increasingly competing with Cortex on enterprise-grade AI is also gaining traction through Now Assist, embedding generative AI across IT, HR and customer support. As ServiceNow scales Now Assist across industries, the platform directly overlaps with Snowflake's Cortex vision for enterprise productivity. Snowflake shares have appreciated 46.2% year to date, outperforming the broader Zacks Computer & Technology sector's return of 7.9% and the Zacks Internet Software industry's increase of 16.1%. Image Source: Zacks Investment Research Snowflake stock is trading at a premium, with a forward 12-month Price/Sales of 15.22X compared with the industry's 5.85X. SNOW has a Value score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for SNOW's fiscal 2026 earnings is pegged at $1.06 per share, unchanged over the past 30 days. The figure indicates a 27.71% increase year over year. Snowflake Inc. price-consensus-chart | Snowflake Inc. Quote Snowflake currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AI) : Free Stock Analysis Report ServiceNow, Inc. (NOW) : Free Stock Analysis Report Snowflake Inc. (SNOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-07-2025
- Business
- Yahoo
5 Revealing Analyst Questions From Snowflake's Q1 Earnings Call
Snowflake's first quarter results were marked by strong revenue and profitability, with management attributing the positive momentum to expanding adoption of its AI and data cloud platform across large enterprise customers. CEO Sridhar Ramaswamy emphasized the company's focus on 'driving product cohesion and extending value throughout the data life cycle.' He highlighted new customer wins, the rapid rollout of over 125 product capabilities, and continued momentum in data engineering and analytics as key factors supporting growth. Is now the time to buy SNOW? Find out in our full research report (it's free). Revenue: $1.04 billion vs analyst estimates of $1.01 billion (25.7% year-on-year growth, 3.4% beat) Adjusted EPS: $0.24 vs analyst estimates of $0.21 (13.1% beat) Adjusted Operating Income: $91.66 million vs analyst estimates of $52.66 million (8.8% margin, 74.1% beat) Product Revenue Guidance for Q2 CY2025 is $1.04 billion at the midpoint Operating Margin: -42.9%, in line with the same quarter last year Customers: 606 customers paying more than $1 million annually Net Revenue Retention Rate: 124%, down from 126% in the previous quarter Billings: $770.1 million at quarter end, up 36.1% year on year Market Capitalization: $75.34 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Sanjit Singh (Morgan Stanley): Asked about consumption trends and monetization of Cortex AI, to which CEO Sridhar Ramaswamy clarified that AI features drive value within existing contracts rather than through separate sales. Kirk Materne (Evercore ISI): Inquired about drivers behind Snowpark and Dynamic Tables adoption, with Ramaswamy attributing success to both product innovation and targeted sales enablement efforts. Raimo Lenschow (Barclays): Questioned strategies for data consolidation versus multi-vendor environments. Ramaswamy acknowledged customer demand for unified platforms and highlighted Snowflake's approach to ease-of-use and integration. Karl Keirstead (UBS): Asked about the impact of macroeconomic conditions and post-COVID optimization. CFO Mike Scarpelli responded that Snowflake's customer base has become more cost-conscious and mature, but current macro factors have not significantly affected demand. Kasthuri Rangan (Goldman Sachs): Probed net revenue retention trends despite new product launches. Scarpelli explained that growth from newer customers and variable expansion rates among large accounts influence the metric's trajectory. In upcoming quarters, the StockStory team will be watching (1) the adoption and monetization pace of new AI and analytics products like Cortex and Snowpark, (2) expansion into regulated sectors such as government and automotive with dedicated solutions, and (3) the company's ability to sustain margin improvements while investing in innovation and customer acquisition. Execution at the annual Snowflake Summit and updates on customer migration trends will also be key signposts. Snowflake currently trades at $225.21, up from $179.15 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-07-2025
- Business
- Yahoo
3 Software Stocks to Keep an Eye On
From commerce to culture, software is digitizing every aspect of our lives. This secular theme makes SaaS companies attractive investment candidates but also comes with higher valuations that cause volatility. Unfortunately, the rich prices have haunted them over the past six months as the industry has shed 2.3%. This performance was discouraging since the S&P 500 returned 5%. However, some businesses can support their premium valuations with superior earnings growth, and our mission at StockStory is to help you find them. Keeping that in mind, here are three resilient software stocks at the top of our wish list. Market Cap: $73.9 billion Founded in 2013 by three French engineers who spent decades working for Oracle, Snowflake (NYSE:SNOW) provides a data warehouse-as-a-service in the cloud that allows companies to store large amounts of data and analyze it in real time. Why Do We Like SNOW? Billings have averaged 26.5% growth over the last year, showing it's securing new contracts that could potentially increase in value over time High switching costs and customer loyalty are evident in its net revenue retention rate of 126% Expected revenue growth of 24.4% for the next year suggests its market share will rise Snowflake is trading at $221.49 per share, or 15.4x forward price-to-sales. Is now the right time to buy? Find out in our full research report, it's free. Market Cap: $1.36 billion Started by Oleg Shchegolev while still in university, Semrush (NYSE:SEMR) is a software-as-a-service platform that helps companies optimize their search engine and content marketing efforts. Why Are We Fans of SEMR? Winning new contracts that can potentially increase in value as its billings growth has averaged 24.8% over the last year Projected revenue growth of 18.7% for the next 12 months suggests its momentum from the last three years will persist Prominent and differentiated software results in a premier gross margin of 82.1% Semrush's stock price of $9.15 implies a valuation ratio of 2.9x forward price-to-sales. Is now a good time to buy? See for yourself in our in-depth research report, it's free. Market Cap: $4.48 billion Founded in Chennai, India in 2010 with the idea of creating a 'fresh' helpdesk product, Freshworks (NASDAQ: FRSH) offers a broad range of software targeted at small and medium-sized businesses. Why Are We Positive On FRSH? Ability to secure long-term commitments with customers is evident in its 19.7% ARR growth over the last year Superior software functionality and low servicing costs result in a stellar gross margin of 84.4% Operating margin expanded by 9.2 percentage points over the last year as it scaled and became more efficient At $15.40 per share, Freshworks trades at 5.4x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
