Latest news with #Snowpark
Yahoo
11-07-2025
- Business
- Yahoo
Snowflake (SNOW) Reaffirmed Buy on Data Tools Momentum
Snowflake Inc. (NYSE:SNOW) ranks among the . Stifel kept its buy rating and $220 price target on Snowflake Inc. (NYSE:SNOW) following meetings with the company's investor relations team. Snowflake's momentum with current data engineering and science tools, such as Snowpark and Dynamic Tables, was the primary subject of the meetings. Additionally, the company talked about its approach to more recent offerings, such as Openflow and Crunchy Data. Management stated that they do not anticipate any significant revenue contribution from these offerings in their current outlook, which Stifel described as 'duly conservative.' According to Stifel, the discussions strengthened their opinion that stabilization within Snowflake's core SQL business should be substantially complemented by current data engineering services. With new products and closer ties with Azure, the firm sees more opportunities for growth. 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. 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
Business Insider
10-06-2025
- Business
- Business Insider
Snowflake Stock (SNOW) Continues to See Buy Ratings Pour In from Top Analysts
Analysts appear to have a positive view of software stock Snowflake (SNOW), as they see strong growth potential ahead. Indeed, five-star Jefferies analyst Brent Thill recently raised his price target on the stock from $220 to $250 and kept a Buy rating. While Snowflake didn't make any major announcements at its recent user conference, Jefferies noted that the company's quick innovation is driving excitement. One key example is Snowflake Intelligence, which is an early-stage product that is 'generating strong buzz' and could help the company expand its market presence. Confident Investing Starts Here: Separately, five-star analyst William Power from Baird also reiterated a Buy rating on Snowflake and pointed to several reasons for his bullish view. To begin with, the company's new Cortex/ AI product is expected to drive future growth, and Snowflake's focus on improving data access and analytics gives it an edge in today's data-driven world. At the same time, Snowflake is expanding its distribution network and strengthening its sales strategies. Another growth driver is the Gen2 Warehouses offering, which provides faster computing and better pricing. In addition, five-star Stifel Nicolaus analyst Brad Reback shared this optimism and maintained a Buy rating after the user conference. Reback noted that customers and partners are increasingly choosing Snowflake over competitors like Databricks for data science, engineering, and machine learning projects. Customers also gave very positive feedback on Snowpark, and many are excited about Openflow, which is a new tool that could remove the need for older middleware ETL platforms. Finally, Snowflake continues to lead in its core SQL business while gaining traction in newer tech. Is SNOW a Good Buy Right Now? Overall, analysts have a Strong Buy consensus rating on SNOW stock based on 34 Buys, six Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SNOW price target of $226.74 per share implies 7.6% upside potential.
Yahoo
29-05-2025
- Business
- Yahoo
Snowflake (SNOW) AI-Powered Hot Streak Leaves Its Valuation Melting
Snowflake (SNOW) continues to impress with its AI-driven strategy, delivering a strong Q1 FY2026 that included a 26% year-over-year increase in product revenue and a robust $6.7 billion pipeline of contracted future business. The company's transformation into a leading AI Data Cloud platform is gaining traction, fueled by high-profile partnerships with OpenAI and Anthropic—strategic moves that hint at even broader collaborations ahead. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter The vision is compelling, and the momentum is undeniable. However, from a valuation perspective, caution is warranted. Persistent net losses and substantial stock-based compensation raise concerns about the sustainability of the current share price, which already reflects much of the expected growth. While the long-term story is exciting, I'm maintaining a Hold rating—enthusiastic about the potential, but mindful of the financial fundamentals that still need to catch up. My Hold rating remains intact after taking a closer look under the hood. Snowflake boasts a compelling business model that continues to resonate with large enterprises, embedding itself deeper into operations by breaking down data silos, streamlining processes, and delivering value from a unified, accessible platform. The platform itself is rapidly evolving. It now features AI agent capabilities, developer tools via Snowpark, and advanced data science functionality through Cortex. Recent high-profile partnerships with OpenAI and Anthropic further bolster Snowflake's credibility in the AI space. Management is clearly focused on expanding its developer ecosystem, aiming to empower businesses to deploy their own LLMs and AI agents within a secure, governed environment, advancing its vision of becoming the definitive 'AI Data Cloud.' That said, the fundamentals raise some concerns. In Q1, Snowflake reported a net loss of $430 million and fell short of expectations on adjusted free cash flow, posting $206 million. These financial pressures, despite strong topline growth, signal that management still faces significant challenges in driving sustainable profitability. While these figures aren't alarming for Snowflake's long-term outlook, the stagnation in revenue retention rates indicates that, despite steady growth and operational progress, the company faces mounting pressure. Competitors with stronger balance sheets and deeper resources are intensifying the challenge. Capital expenditures have climbed, largely due to Snowflake's investments in AI infrastructure, its new headquarters, and an increasingly complex product suite. Though revenue growth remains robust, the company's profitability has yet to reflect the efficiencies being pursued. Notably, stock-based compensation exceeded $400 million in just one quarter, continuing to dilute shareholders and pushing out the timeline for achieving sustainable earnings. For prospective investors, this combination of uncertainty, elevated spending, and the need to raise additional capital adds a layer of risk that's difficult to ignore. Snowflake now operates in a significantly more competitive landscape. Its early lead in cloud-native data warehousing is being eroded by deeply integrated and widely adopted alternatives such as Microsoft Fabric, Amazon Redshift, Google BigQuery, and Databricks. Microsoft, in particular, is leveraging its expansive Azure ecosystem to bundle generative AI capabilities, creating a powerful value proposition that places considerable pressure on standalone platforms like Snowflake. Meanwhile, Databricks has continued to gain traction, securing significant funding and rapidly expanding its user base. Competing head-to-head with tech giants may prove challenging for a company like Snowflake, which has yet to reach profitability. In this context, strategic partnerships appear to be a prudent path forward. Snowflake's alliances with Anthropic, OpenAI, Nvidia, and others are designed to strengthen its competitive position and expand its capabilities, but such partnerships are rarely straightforward. While these collaborations enhance the platform's appeal and long-term potential, they depend on seamless integration and sustained adoption to translate into meaningful revenue. At this stage, those outcomes remain more aspirational than material. Consequently, my investment thesis rests on the view that intensifying competition could outpace Snowflake's monetization efforts unless management can significantly accelerate execution. Snowflake reported total revenue of $1.04 billion for Q1 FY2026, exceeding analyst expectations. Remaining performance obligations increased to $6.7 billion—a 34% year-over-year rise—reflecting strong customer commitment and continued platform adoption. The company added 451 net new customers during the quarter, bringing its total to 606 customers generating over $1 million in trailing 12-month product revenue. That said, the pace of growth has clearly moderated compared to previous years, signaling a maturing business facing more measured expansion. Despite solid growth in remaining performance obligations, profitability remains a challenge for Snowflake. GAAP losses persist, and although operating cash flow was positive, adjusted free cash flow margins fell short of expectations. The company is guiding for 25% free cash flow margins for the full year, but ongoing capital expenditures and heavy investment in AI initiatives may put downward pressure on that target. Snowflake is currently trading at more than 18 times forward revenue, significantly above the industry average. Based on my discounted cash flow analysis—assuming a 22% compound annual revenue growth rate through FY2030, a 20% long-term free cash flow margin, and an 8.5% weighted average cost of capital—the stock's fair value is approximately $210 per share, indicating it is close to fully valued. In a more optimistic scenario, with a 25% revenue CAGR and 25% FCF margin, the valuation could reach around $235. Conversely, under more conservative assumptions, the fair value drops to roughly $180 per share. The analyst community maintains a generally positive yet cautious outlook on the stock. Among 40 analysts covering Snowflake, 33 are bullish, while seven are bearish. Not a single analyst is bearish on SNOW stock. SNOW's average stock price target stands at $220.54, indicating almost 7% upside potential over the coming twelve months. Given the stock is trading close to consensus targets, any unexpected slowdown in revenue growth or customer acquisition could trigger downward pressure on the share price. In my view, Snowflake stands out as one of the most strategically positioned enterprise platforms in the rapidly evolving AI sector. Its technology is robust, the vision compelling, and partnerships with leading tech companies lend significant credibility. However, much of this potential appears to be already reflected in the current valuation, while the financial fundamentals have yet to fully catch up. Strategic partnerships and innovation can only go so far when margins are under pressure and competition is intensifying. For these reasons, I maintain a Hold rating. Snowflake could merit a Buy rating in the future, but only once it demonstrates a clear path to profitability and resilience amid a highly competitive market. At present, it remains a story to watch rather than chase. Investors should closely monitor capital expenditures, customer growth, and the tangible impact of AI-driven demand on revenue. Until the financials improve, I believe caution is not only prudent but essential. Disclaimer & DisclosureReport an Issue
Yahoo
26-05-2025
- Business
- Yahoo
Oppenheimer Maintains Outperform Rating on Snowflake (SNOW), Lifts PT
On Thursday, Oppenheimer raised its price target on Snowflake Inc. (NYSE:SNOW) to $225 from $210, while maintaining an Outperform rating on the shares. The firm noted that Snowflake delivered strong FQ1 2026 results due to broad-based demand and consistent consumption trends. A software engineer at work, surrounded by a wall of computer monitors connected to a 'Data Cloud' platform. The company reported total revenue of $1 billion for the quarter, which was up 26% year-over-year. Product revenue specifically reached $996.8 million and also represented a 26% year-over-year increase. Snowflake now serves 606 customers with trailing 12-month product revenue greater than $1 million, a 27% year-over-year increase, and has 754 Forbes Global 2000 customers, which reflects a 4% year-over-year growth. Sridhar Ramaswamy, CEO of Snowflake, commented on the results, stating that the company delivered 'another strong quarter.' Oppenheimer also highlighted better-than-expected activity in Snowpark and Dynamic Tables, along with robust AI adoption, as indicators that newer products are resonating well with customers. The firm is bullish on Snowflake and considers it a top pick. Oppenheimer anticipates potential upside, particularly if macroeconomic conditions remain stable. Snowflake Inc. (NYSE:SNOW) provides a cloud-based data platform for various organizations globally. While we acknowledge the potential of SNOW to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SNOW and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. 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
