Snowflake plans to acquire Observe, an observability platform that has been built on Snowflake’s databases from day one. (Observability platforms help companies monitor their software systems and data for performance issues and bugs.)The cloud data company announced it signed a definitive agreement to acquire Observe, subject to regulatory approval, on January 8. Snowflake will integrate Observe’s product into its own to give customers a unified place to collect and store their telemetry data (logs, metrics ...

Key Takeaways SNOW stock gained 45% year over year, driven by strong platform adoption and an expanding customer base. Snowflake's AI offerings lifted engagement, with 7,300 customers using AI and ML tools weekly. SNOW forecasts strong Q4 growth, but trades at a steep premium versus the industry. Snowflake’s (SNOW) shares have soared 45% over the trailing 12-month period, outperforming the Zacks Computer and Technology sector’s appreciation of 25.9% and the Zacks Internet Software industry’s growth of 6.6%. ...

Snowflake Inc. (NYSE:SNOW) is one of the stocks Jim Cramer offered insights on. During the episode, a caller inquired if the stock is a buy, and in response, Cramer said: "I have to tell you, I thought the quarter wasn't that bad… I was quite surprised about the negative reaction. You know it is a highly valued company, but I think Sridhar Ramaswamy is a terrific CEO, and I think the stock is, quite frankly, a buy." A laptop and a computer monitor display a detailed stock market technical analysis chart. Ph ...

USA | Software Equity Research '26 Software Playbook – Waiting Patiently on Shore to Ride the AI Waves We recommend investors stay underweight software as growth decelerates and lags versus other sectors like semis. We believe '26 will be another year of gradual AI monetization, with more meaningful growth contribution/ acceleration needed to ease AI disintermediation fears, thus requiring more selectivity. Top picks - Mega Cap: MSFT, META; Large Cap: INTU, TEAM, ORCL; Mid Cap: PCOR, U, WIX; Small Cap: UPWK ...

Snowflake ( SNOW ) has experienced some of the volatility moving through the AI trade. Even as the company continues to deliver best-in-class top-line growth, the valuation has seen some steam come out. One thing that the company has lacked relative to many peersJulian Lin is a financial analyst. He finds undervalued companies with secular growth that appreciate over time. His approach is to look for companies with strong balance sheets and management teams in sectors with long growth runways. Julian is the ...

SANTA CLARA, Calif.--(BUSINESS WIRE)--DoiT, a global leader in enterprise-grade FinOps and CloudOps solutions, today announced the acquisition of SELECT, a data optimization company purpose-built to help organizations gain visibility and control over data platform spend, starting with Snowflake. The acquisition represents a strategic milestone within DoiT's previously announced $250 million AI investment strategy and builds on recent acquisitions, including LiveDiagrams, PerfectScale and CloudW. ...

Modern trading desk with rising stock charts overlooking a futuristic city, symbolizing AI-driven tech stock upgrades. Key Points Snowflake and CrowdStrike rode 2025’s AI-driven software demand wave, but 2026 upside depends on margins and recurring-revenue durability. Alphabet drew the most upgrades as investors rewarded AI improvements in Search, YouTube, and Cloud, even as near-term upside looked tighter. Tech and Communication Services led 2025 sector performance, helping concentrate upgrades in a h ...

Core Insights - Snowflake (SNOW) is experiencing significant growth, with a 20% year-over-year increase in its customer base, reaching 12,621 customers in Q3 of fiscal 2026 [1][10] - The company's AI capabilities are a major driver of its success, achieving a $100 million AI revenue run rate a quarter earlier than anticipated, with 1,200 customers utilizing the Snowflake Intelligence platform [2][10] - Snowflake has surpassed $2 billion in sales through the Amazon Web Services (AWS) Marketplace, doubling its year-over-year growth, and is enhancing its partnership with AWS through new innovations [4][10] Customer Growth and Revenue - The number of customers with trailing 12-month product revenues exceeding $1 million has increased by 29% year-over-year, totaling 688 [1] - Snowflake has 766 customers from the Forbes Global 2000 list, indicating strong adoption among large enterprises [1] AI and Technology Adoption - The rapid adoption of Snowflake's AI platform is transforming business data interactions, contributing significantly to revenue growth [2] - The company is focused on modernizing data platforms and creating AI-ready architectures through collaborations with AWS [4] Competitive Landscape - Snowflake faces intense competition from major players like Amazon and Alphabet in the cloud data and analytics market [5] - Alphabet's Google Cloud is expanding rapidly, with a 46% sequential increase in backlog and a 34% year-over-year rise in new customers [6] - Amazon's AWS continues to secure new agreements, indicating strong demand for its cloud services [7] Stock Performance and Valuation - Snowflake shares have decreased by 0.4% over the past six months, underperforming the Zacks Computer & Technology sector's 20.1% return but outperforming the Zacks Internet Software industry's decline of 6.3% [8][10] - The stock is trading at a forward 12-month Price/Sales ratio of 13.56X, significantly higher than the Internet Software industry's 4.86X [11] - The Zacks Consensus Estimate for SNOW's fiscal 2026 earnings is $1.20 per share, reflecting a 44.58% year-over-year increase [13]

Core Viewpoint - AI software stocks are expected to emerge as significant market players in 2026, following the dominance of semiconductor and AI infrastructure stocks in recent years [1] Group 1: SoundHound AI - SoundHound AI is transitioning from an AI voice company to a voice-led agentic AI company, leveraging its voice technology for a competitive advantage [2] - The company experienced rapid growth, with revenue more than doubling in the first nine months of 2025, and has established a strong presence in the automobile and restaurant industries [4] - SoundHound AI's acquisition of Amelia has enhanced its capabilities in creating an agentic AI platform and expanded its customer relationships in healthcare, financial services, and retail [4] - The company is improving its gross margins, with expectations of generating positive EBITDA soon, and is well-positioned for future growth [6] Group 2: Salesforce - Salesforce is viewed as a potential AI loser but is actually well-positioned due to its role as a system of record for customer service, marketing, and sales [8] - The acquisition of Informatica strengthens Salesforce's data management capabilities, enhancing its position as a reliable data source [8] - Salesforce's Agentforce solution is integrated throughout its product suite, with annual recurring revenue (ARR) for Agentforce surging 330% to $540 million last quarter [9] - The stock is considered undervalued, trading at a forward price-to-sales (P/S) ratio below 5.5, a forward price-to-earnings (P/E) ratio around 20, and a price/earnings-to-growth (PEG) ratio below 0.65 [10] Group 3: Snowflake - Snowflake operates a cloud-based data warehousing and analytics platform that separates storage from compute, allowing customers to access data across different cloud providers [11] - The platform's architecture creates a "sticky" environment for customers, making it difficult to move data once integrated [11] - Snowflake is also adopting AI agents through its Snowflake Intelligence solution, which had over 1,200 customers and a $100 million AI revenue run rate at the end of the last quarter [12] - The company reported a 29% revenue increase last quarter, with a net revenue retention rate of 125% over the past 12 months, indicating strong growth potential [13][14]

Core Insights - Gotham Asset Management's latest 13F filing reveals a strategic shift towards broad market exposure, particularly in mega-cap technology and liquidity management, rather than focusing on individual stock selection [1][2] Portfolio Adjustments - Significant increase in SPDR S&P 500 ETF (SPY) by 1,262,794 shares, now totaling 5,618,281 shares, representing a $3.74 billion position, which is 16.29% of the portfolio, indicating a deliberate increase in market exposure [3][4] - NVIDIA (NVDA) position increased by 591,589 shares to 2,863,109 shares, valued at $534.2 million (2.33%), reflecting participation in AI-driven earnings growth in semiconductors [5][6] - Apple Inc. (AAPL) saw an increase of 538,746 shares to 1,428,976 shares, valued at $363.9 million (1.58%), with a 60% rise quarter over quarter, indicating strong signals from valuation and quality models [7] - Snowflake (SNOW) position increased by 388,608 shares to 956,539 shares, valued at $215.7 million (0.94%), with a notable 68% increase quarter over quarter, suggesting favorable screening on forward earnings metrics [8] - iShares 0–3 Month Treasury Bond ETF (SGOV) exposure doubled with an increase of 803,355 shares to 1,552,170 shares, valued at $156.3 million (0.68%), reflecting active liquidity management [9] - Amazon.com (AMZN) position increased by 260,509 shares to 978,948 shares, valued at $214.9 million (0.94%), with a 36% rise quarter over quarter, reinforcing exposure to mega-cap platforms with improving cash flow [10][11] Strategic Overview - The quarter was characterized by a beta-heavy approach, with a significant increase in S&P 500 exposure, suggesting limited advantage in deviating from the index at current valuations [12] - The scaling of mega-cap technology stocks (NVDA, AAPL, AMZN, SNOW) indicates broad-based signals rather than isolated stock convictions [13] - Active risk management is evident from the increase in short-term Treasuries, highlighting a disciplined approach to liquidity and volatility control [14] - Gotham's largest individual stock positions remain modest relative to total assets, reinforcing a systematic and diversified investment philosophy [15] - The filing reflects adjustments in factor exposure and portfolio construction decisions rather than discretionary stock picking, indicating a structured investment approach [16]