Investors and analysts wanted more from Snowflake Inc., beyond the company's latest earnings beat and outlook hike.
Shares of Snowflake (SNOW) dropped on Thursday morning after the company reported its second quarter results that topped estimates on the top and bottom lines and raised its full-year revenue guidance. Investors seem to be worried the company could be falling behind rivals when it comes to AI.
Bill Strazzulo, Bell Curve Trading chief market strategist, joins 'Power Lunch' to discuss stock plays for three stocks.
Snowflake Inc.'s stock price took a hit despite beating market consensus due to concerns about a cyberattack in May. The cyberattack impacted some customers, but Snowflake's platform was not breached; the incident is considered a one-time event. Snowflake reported strong booking growth driven by new customer acquisitions, AI investments, and high retention rates, with a one-year price target of $210 per share.
Snowflake's (SNOW) near-term prospects suffer from growing GPU-related costs despite an expanding portfolio and strong partner base.
Shares of Snowflake fell on Thursday, a day after the data cloud analytics company released fiscal second-quarter 2025 earnings that showed decelerating product revenue growth compared to past quarters. Product revenue, which accounts for the vast majority of Snowflake's total revenue, was $829 million for the period, up 30% year over year.
Snowflake is one of the fastest-growing tech stocks out there, but also very expensive.
Snowflake stock is dropping after a tumultuous year, with a potential new normal price of around $120-$125 per share. Despite strong revenue growth and customer expansion, Snowflake faces challenges with profitability and margins, leading to a negative bias on the stock. The company must maintain at least 25% revenue growth to support its valuation, with the potential for the stock to reach above $100 in the near future.
Snowflake beat estimates in its fiscal second quarter, but its bottom line fell. Management forecasts that revenue growth will decelerate in the second half of the year.
Snowflake shares tumbled more than 12% despite the data cloud analyst firm reporting better-than-expected results for the second quarter and raising its full-year product revenue forecast. For Q2, Snowflake posted product revenue of $829.3 million, up 30% year-over-year and ahead of estimates of $808.4 million Adjusted earnings per share (EPS) were $0.18, beating estimates of $0.16.
Snowflake Inc. NYSE: SNOW is a prominent player in the rapidly growing cloud data platform market. It recently released its earnings report for the second quarter of fiscal year 2025.
Aside from the semiconductor producers, another benefactor of the artificial intelligence (AI) driven rally has been the cloud server sector, in which Snowflake (NYSE: SNOW) has been an up-and-coming candidate.