Snowflake Inc. (SNOW) is finally upgraded to a Speculative Buy after entering a bear market, with its consumption-based model outperforming traditional SaaS peers. SNOW's AI-ready data platform, robust product revenue growth (+30% YoY), and stable 125% net revenue retention underpin its investment thesis. Multi-cloud capabilities and curated AI tools like Cortex enhance migration, data access, and support continued consumption growth momentum.
Zacks.com users have recently been watching Snowflake (SNOW) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Snowflake (NYSE:SNOW) shares have surged by nearly 50% this year, although the stock fell on Thursday after the Q3 results were announced. Investors seem to be worried as product revenue growth slowed down—from 32% in the previous quarter to 29%—and guidance indicated a further deceleration in Q4.
Snowflake remains a long-term Buy, despite a recent 11% price dip, driven by strong AI adoption and robust product revenue growth. SNOW's AI tools underpin 50% of new bookings, with a $100M AI run rate achieved a quarter early, signaling real-world enterprise demand. Valuation remains elevated versus peers, with negative profit margins offset by strong free cash flow and aggressive investment in S&M and R&D.
SNOW shares slip post Q3 as an outage hits revenues, but strong AI momentum and solid guidance keep investor interest alive.
Snowflake ( NYSE:SNOW ) released its third-quarter earnings yesterday, posting results that topped Wall Street estimates.
Investors are hammering Snowflake's stock despite quarterly results that topped analysts' expectations on the top and bottom lines.
SNOW's Q3 results benefit from strong customer gains and wider margins, but its shares dip sharply in after-hours trade.
Shares of Snowflake Inc (NYSE:SNOW) are plummeting 10% to trade at $238.57 this morning, trading back near their late-November lows after the software company's Q4 operating margin guidance disappointed investors.
Snowflake stock was up 68% for the year up until the stock market closed December 3.
Snowflake Inc (NYSE:SNOW) reported third quarter earnings that beat Wall Street expectations, but shares fell about 9% in early trade as the company forecast slower product revenue growth for the fourth quarter, partly due to discounts on large, long-term deals. The cloud data analytics expects product revenue growth of 27% in Q4, down from 29% growth in the October quarter, reaching $1.16 billion.
Snowflake (SNOW) is rated a buy after a post-earnings dip, with shares near $240 offering a compelling entry point. Q3 results beat expectations, but soft Q4 guidance and margin outlook triggered a 9% drop despite robust 28% revenue growth and 73% gross margin. SNOW trades at 19x sales versus a 35x long-term average, presenting 20–30% equity upside if valuation reverts, supported by strong AI-driven growth.