SNOWSnowflake Inc

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Company Info

CEO

Frank Slootman

Location

Montana, USA

Exchange

NYSE

Website

https://snowflake.com

Summary

Snowflake Inc.

Company Info

CEO

Frank Slootman

Location

Montana, USA

Exchange

NYSE

Website

https://snowflake.com

Summary

Snowflake Inc.

AI Insights for SNOW
2 min read

Quick Summary

Snowflake Inc. is a leading provider of a cloud-based data platform that enables organizations to efficiently store, manage, and analyze large volumes of data. Its primary offering is the Data Cloud, a unified platform that helps enterprises consolidate disparate data sources for advanced analytics, data sharing, and AI-driven insights. Snowflake’s customers are primarily large enterprises, including those in regulated industries, technology, manufacturing, and the public sector. The company supports businesses looking to transition to the cloud, modernize their data infrastructure, and leverage emerging technologies like artificial intelligence. Snowflake’s mission is to help customers extract actionable insights from their data, driving business decision-making and digital transformation.

The Bull Case

  • Snowflake’s main strengths lie in its advanced technology platform, which is recognized for flexibility, scalability, and strong data integration capabilities.
  • Its early leadership in cloud-native data warehousing and expanding presence in AI make it a favored partner for large enterprises looking to modernize their data infrastructure.
  • Snowflake’s ecosystem is bolstered by strategic partnerships with industry giants like SAP and Deloitte, which enhance its enterprise reach and technical capabilities.
  • The company’s rapid pace of innovation, demonstrated by frequent and significant product launches, keeps it at the forefront of cloud data and AI software.
  • High customer retention and consistent growth in subscription revenue further underscore its strong market position.

The Bear Case

  • Profitability remains a key weakness for Snowflake, as the company continues to operate at a net loss, driven by high expenditures in research, development, and stock-based compensation.
  • Its premium valuation—evident in high price-to-book ratios and enterprise value multiples—leaves the stock vulnerable during market corrections or periods of tech sector underperformance.
  • Intense competition from much larger players like Microsoft, Amazon, and Databricks increases pricing pressure and could erode market share.
  • The business model’s dependence on large enterprise deals exposes it to long sales cycles and broader macroeconomic risks.
  • Additionally, ongoing operational losses could limit Snowflake's flexibility to invest aggressively should market conditions tighten.

Key Risks

  • Major risks include intensifying competition from cloud hyperscalers and specialized analytics platforms, which could compress margins and threaten customer retention.
  • Persistent operating losses and high share-based compensation could become more problematic if revenue growth slows or capital markets tighten.
  • Macroeconomic uncertainty—such as global trade disputes or tightening monetary policies—could lead customers to cut back spending on data infrastructure projects.
  • Security and compliance risks arise as Snowflake handles increasing volumes of sensitive enterprise data.

What to Watch

UpcomingDuring the most recent quarter, Snowflake reported strong financial results, including a 26% growth in product revenue and the acquisition of 451 new customers, bringing the total to over 11,500.
UpcomingThe company launched over 125 new product capabilities, significantly expanding its AI features and data integration tools.
UpcomingKey strategic partnerships were announced with SAP and Deloitte, aimed at furthering enterprise adoption and data unification for AI applications.
ExpectedIn the coming quarter, Snowflake is expected to maintain its growth trajectory, supported by continued demand for its AI and data cloud solutions.

Price Drivers

  • Snowflake’s stock price is driven by a combination of its financial performance, including revenue and earnings results, as well as guidance updates during earnings announcements.
  • Significant macroeconomic events, such as trade relations between the US and China or interest rate decisions by the Federal Reserve, also influence tech sector valuations and Snowflake’s share price.
  • Investor sentiment around AI adoption, new product capabilities, and major partnerships--such as those with SAP and Deloitte--act as catalysts for share appreciation or decline.
  • Competitive pressures and the evolving landscape in cloud data and AI software also play a substantial role, with investors closely monitoring growth in customer acquisition, retention, and spend.

Recent News

  • Recent news for Snowflake includes several key developments.
  • The company reported better-than-expected earnings, with strong revenue and EPS surpassing analyst estimates, and subsequently raised its full-year outlook.
  • Snowflake announced the launch of new AI features alongside major partnerships with SAP and Deloitte, signaling its commitment to deepening enterprise adoption and expanding its product ecosystem.
  • Bank of America Securities upgraded the stock to Buy and assigned a $240 price target, citing momentum in AI and data services.

Market Trends

  • Snowflake operates within a rapidly evolving technology landscape, where demand for cloud-based data storage, integration, and advanced analytics is accelerating.
  • Broader market trends include the explosive growth of AI adoption across enterprises and increased prioritization of digital transformation strategies.
  • Cloud migration remains a key theme, with businesses seeking scalable and secure platforms to manage their expanding data needs.
  • Heightened competition among cloud service providers and analytics platforms is driving rapid innovation and price competition.

Community Research

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Topics: Company overview • Products • Competitors • Strengths & Risks

Symbol's posts

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@Deep_Brief438 1 week ago

is SNOW still priced for perfection?

is SNOW still priced for perfection?

Snowflake has solid revenue growth, but profitability concerns remain. High hopes can be potent... or poisonous. Curious how others handle names such as this, buy into the growth narrative early, or wait for the margins to play catch-up?

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@Kokorache 1 week ago

Fund manager Nick Evans warns application software is "toxic" due to AI threat, pivots to hardware

Fund manager Nick Evans warns application software is "toxic" due to AI threat, pivots to hardware

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@ShallowLoving 2 weeks ago

YieldMax announced distributions for Group 2 weekly ETFs

YieldMax announced distributions for Group 2 weekly ETFs

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@FallenBlew41 2 weeks ago

JPM’s “AI-Resilient” Software List :- Do We Agree?

JPM’s “AI-Resilient” Software List :- Do We Agree?

JPM just dropped their list of “AI-resilient” software names and it’s a pretty stacked lineup , , , , , , , and more. Basically the usual suspects that either sell the picks and shovels of AI or sit right inside core enterprise workflows where AI adoption actually shows up in real spending.

Curious what everyone else thinks

Which name here is actually the most AI-proof… and which one just looks that way?

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Software Stocks Are Getting Smoked and Wall Street Isn’t Playing Anymore

Software Stocks Are Getting Smoked and Wall Street Isn’t Playing Anymore

Software’s getting absolutely wrecked and yeah, it feels brutal. But this isn’t some mystery crash. Investors are done overpaying for “growth someday” stories. If a company can’t show real cash flow right now, it’s getting smoked. Names like , , are all feeling that heat. Doesn’t mean software is cooked. It just means the free money era is officially dead. Strong players will bounce back. The hype-only stuff probably won’t. If you’re already in, don’t rage-sell quality just because the screen’s red. If you’re looking to buy, slow down and be selective. This is a shakeout, not the end of the game.

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@JaneWilliams 3 weeks ago

Software Apps Are Getting Cooked Anyone Else Noticing This?

Software Apps Are Getting Cooked Anyone Else Noticing This?

Software-app stocks have been getting wrecked for months. especially  feels like it’s red every single day. Hard not to wonder what actually changed. Is AI (OpenAI, etc.) just blowing up the whole space, or is this one of those ugly resets before the sector has to consolidate to survive?

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@starcahier 3 weeks ago

Big tech earnings recap - Meta surges while Microsoft slips, memory stocks hitting highs

Big tech earnings recap - Meta surges while Microsoft slips, memory stocks hitting highs

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@Kokorache 1 month ago

Palantir Q3 revenue up 63%, commercial growth is strong but P/E hits 170

Palantir Q3 revenue up 63%, commercial growth is strong but P/E hits 170

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@Shashaa 1 month ago

How Are These SaaS Companies Still Losing Money?

How Are These SaaS Companies Still Losing Money?

Maybe I’m missing something, but how are names like , , , , , and still unprofitable? These aren’t tiny startups anymore some have been around for 10–15 years and are well past the crazy hypergrowth phase. Gross margins are like 80%, so the business model clearly works.

Is it just endless spending on sales, marketing, and R&D? Or is stock-based comp doing more damage than people admit? Feels like at some point profits should show up.

Do these companies eventually flip the switch, or is this just the new normal for SaaS?

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@BarnaclesActiv 2 months ago

VGT is outperforming the S&P 500 in 2025, up 23% vs 17%

VGT is outperforming the S&P 500 in 2025, up 23% vs 17%

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