Latest news with #SnowflakeInc
Yahoo
3 days ago
- Business
- Yahoo
Snowflake Gains Momentum in AI and Data Cloud, Says Truist Securities
Snowflake Inc. (NYSE:SNOW) ranks among the best fundamental stocks to buy according to hedge funds. On June 18, Truist Securities restated its Buy rating and $235 price target for Snowflake Inc. (NYSE:SNOW) following encouraging results from the firm's mid-year IT spending survey. The survey revealed that Snowflake's data cloud offerings remained prevalent and suggested that growing momentum would continue. Notably, Truist appeared somewhat surprised by the positive survey results around new product adoption. Truist also noted advancements during Snowflake's recent investor session and user conference, highlighting the company's notable advancements in artificial intelligence over the previous two years. As investments in the AI vertical continue to rise, the research firm believes Snowflake Inc. (NYSE:SNOW) is in an ideal spot to take on additional workloads. Snowflake Inc. (NYSE:SNOW) is an American cloud-based data storage company that operates a platform built on Amazon Web Services, Microsoft Azure, and Google Cloud. It also provides Snowflake Cortex with a set of AI capabilities that employ large language models to analyze unstructured data. While we acknowledge the potential of SNOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. Read More: and Disclosure: None. Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Informatica (INFA) Unveils New AI Tools at Snowflake Summit 2025
Informatica Inc. (NYSE:INFA) is one of the . On June 3rd, Informatica Inc. (NYSE:INFA) announced new product innovations at Snowflake Summit, Snowflake's annual user conference. The updates, including expansion of its support for Apache Iceberg, will allow joint customers to use both companies' Generative AI (GenAI) technologies for building reliable and enterprise-level AI applications. The company announced the general availability of new application integration capabilities for Snowflake Cortex AI. This includes new connectors for Cortex AI, Cortex Search, Cortex Analyst, and Cortex Agents, as well as simplified GenAI application creation and no-code development and deployment with Snowflake Cortex AI. A business executive in a modern office looking over reports detailing artificial intelligence. Informatica also announced that it is enhancing its Open Table Connector (Apache Iceberg) to support Apache Polaris. Scheduled for release in July 2025, the enhancement will allow loading data into Snowflake from over 300 sources using the Iceberg table format. The company also announced the launch of its Master Data Management (MDM) SaaS Extension for the Snowflake AI Data Cloud. This will allow customers to consolidate master and transaction data across multiple sources, facilitating analytics and AI use cases. 'Informatica continues to be at the forefront of Generative AI and Apache Iceberg innovation with Snowflake enabling our joint customers to build for the future with a trusted, AI-ready data foundation. Today's announcement underscores our relentless commitment to innovating and leading with Snowflake to deliver greater value for customers through deep product roadmap and partnership alignment.' Informatica is a leader in enterprise AI-powered cloud data management. While we acknowledge the potential of INFA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks in the Spotlight and Disclosure: None. 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
18-06-2025
- Business
- Yahoo
Canaccord Keeps Buy on Snowflake (SNOW) with $220 Price Target
Snowflake Inc. (NYSE:SNOW) is one of the 10 best growth stocks to buy according to billionaires. On June 9, Canaccord Genuity analyst Kingsley Crane reaffirmed a Buy rating on Snowflake (SNOW) and maintained the price target at $220. In Crane's view, Snowflake continues to strengthen its position by focusing on simplifying data access and making it more broadly usable across enterprises. The platform's architecture, especially its SQL-native interface, has made it easier for organizations to adopt and scale, helping drive up consumption, which remains the core of Snowflake's revenue model. A software engineer at work, surrounded by a wall of computer monitors connected to a 'Data Cloud' platform. The analyst also highlighted the company's product advancements, including Generation 2 Warehouses and Adaptive Compute, which aim to deliver improved performance and efficiency. He also believes that Snowflake's move toward open data standards and its recent acquisition of Crunchy Data suggest a broader strategy to embed itself more deeply within open-source and AI ecosystems. Products like Cortex AI and AISQL, along with the growing Marketplace, underscore its intent to keep pace with rising enterprise demand for AI-powered data tools. Due to these factors, Crane believes that Snowflake is well-positioned as a key long-term beneficiary of the growing demand for AI-driven data platforms among enterprises. Snowflake Inc. (NYSE:SNOW) is a cloud-based data platform that enables organizations to store, analyze, and share data efficiently. Its Data Cloud allows businesses to consolidate data in one secure and reliable place, driving innovation and valuable insights. While we acknowledge the potential of SNOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
15-06-2025
- Business
- Yahoo
A Look At The Fair Value Of Snowflake Inc. (NYSE:SNOW)
Snowflake's estimated fair value is US$229 based on 2 Stage Free Cash Flow to Equity With US$208 share price, Snowflake appears to be trading close to its estimated fair value The US$227 analyst price target for SNOW is 1.0% less than our estimate of fair value Does the June share price for Snowflake Inc. (NYSE:SNOW) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. We will use the Discounted Cash Flow (DCF) model on this occasion. There's really not all that much to it, even though it might appear quite complex. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$902.4m US$1.09b US$1.42b US$1.97b US$2.79b US$3.74b US$4.48b US$5.13b US$5.70b US$6.19b Growth Rate Estimate Source Analyst x22 Analyst x23 Analyst x22 Analyst x7 Analyst x4 Analyst x4 Est @ 19.61% Est @ 14.61% Est @ 11.11% Est @ 8.66% Present Value ($, Millions) Discounted @ 8.1% US$835 US$937 US$1.1k US$1.4k US$1.9k US$2.3k US$2.6k US$2.8k US$2.8k US$2.8k ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$20b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.9%. We discount the terminal cash flows to today's value at a cost of equity of 8.1%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$6.2b× (1 + 2.9%) ÷ (8.1%– 2.9%) = US$124b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$124b÷ ( 1 + 8.1%)10= US$57b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$77b. The last step is to then divide the equity value by the number of shares outstanding. Relative to the current share price of US$208, the company appears about fair value at a 9.3% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Snowflake as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.1%, which is based on a levered beta of 1.188. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Snowflake Strength Debt is not viewed as a risk. Weakness No major weaknesses identified for SNOW. Opportunity Forecast to reduce losses next year. Has sufficient cash runway for more than 3 years based on current free cash flows. Current share price is below our estimate of fair value. Threat Not expected to become profitable over the next 3 years. Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. DCF models are not the be-all and end-all of investment valuation. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Snowflake, there are three additional items you should assess: Risks: For instance, we've identified 2 warning signs for Snowflake that you should be aware of. Management:Have insiders been ramping up their shares to take advantage of the market's sentiment for SNOW's future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every American stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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
13-06-2025
- Business
- Yahoo
Citi Reiterates Buy on Snowflake (SNOW) as Cortex AI Gains Traction
Snowflake Inc. (NYSE:) is one of the One of the biggest analyst calls on Wednesday, June 11, was for Snowflake. Citi reiterated the stock as 'Buy' with an associated price target of $245.00. The firm said it is sticking with the stock following an investor day. Snowflake is experiencing strong momentum owing to its new products, particularly Cortex AI. Cortex AI is a suite of AI features using large language models (LLMs) to offer intelligent assistance to customers. Customers are particularly excited about the accelerated product development under CEO Sridhar Ramaswamy and the readiness of enterprises to deploy generative artificial intelligence applications. Customers have also resonated well with the company's strategy to avoid vendor lock-in, thereby resulting in widespread adoption of the Cortex AI for tasks such as fraud detection and process automation. This has, in turn, led to reduced operational overheads. The firm also talked about the adoption of Apache Iceberg and the Polaris Catalog across various industries, reflecting on the increasing demand for vendor-neutral data management solutions. Crunchy Data's recent acquisition further strengthens Snowflake's position by enhancing support for Postgres. This, in turn, aligns with its strategy to provide open operational and analytical workloads for AI. 'In general, customer enthusiasm was high around Snowflake's new products.' Snowflake Inc. (NYSE:SNOW) is a cloud-based data storage company providing a data analysis, storage, and sharing platform. While we acknowledge the potential of SNOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None.
