Core Viewpoint - Snowflake (SNOW) has shown significant volatility in the AI sector, despite maintaining strong top-line growth, leading to a decrease in its valuation [1] Group 1: Company Performance - Snowflake continues to deliver best-in-class top-line growth, indicating robust operational performance [1] - The company's valuation has seen a decline, suggesting a potential market correction or reevaluation [1] Group 2: Analyst Insights - Julian Lin, a financial analyst, focuses on identifying undervalued companies with long-term growth potential, emphasizing the importance of strong balance sheets and management teams [1] - Lin leads an investment group that shares high-conviction stock picks aimed at outperforming the S&P 500, combining growth principles with strict valuation criteria [1]

Core Viewpoint - Snowflake Inc. (NYSE:SNOW) is positioned as a leading investment in the big data sector, with its future trajectory dependent on key strategic and financial developments [1] Group 1: Company Overview - Snowflake Inc. is a cloud-based data storage company that enables data analysis and simultaneous access to large datasets with low latency, utilizing platforms such as AWS, Microsoft Azure, and Google Cloud [4] - The company has developed predictive analytics features that help uncover patterns in data, facilitating predictive data modeling of future trends [4] Group 2: Financial Performance and Growth Indicators - Snowflake's AI portfolio has surpassed a $100 million AI revenue run-rate, indicating significant growth in this area [2] - Key performance indicators for the company include net revenue retention, Global 2000 penetration, and attach rates in new workloads, which are essential for assessing the potential to increase wallet share [2] Group 3: Strategic Developments - The integration of Apache Iceberg and the establishment of the Polaris Catalog have reduced barriers to adoption in open data environments, aiding in client acquisition while potentially impacting retention [3]

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]

Group 1: Palantir Technologies Overview - Palantir Technologies (NASDAQ: PLTR) has gained significant attention in AI and data analytics, with its stock increasing by 150% to $188 as of the latest report, driven by rising demand for enterprise and government AI solutions [1] - The company's strong momentum is attributed to its Artificial Intelligence Platform, increased commercial adoption, and ongoing government contract wins, which have revitalized interest in the broader AI software sector [1] Group 2: Competitive Landscape - Looking ahead to 2026, Palantir may face challenges from competitors, particularly Snowflake (NYSE: SNOW) and C3.ai (NYSE: AI), which are positioned to threaten PLTR's market dominance [2] - Snowflake is a cloud data and AI platform that is well-positioned as organizations migrate AI workloads into production, with a focus on stronger execution and monetization of AI services [3][4] - C3.ai specializes in ready-to-deploy AI applications across various sectors, including energy, manufacturing, healthcare, and defense, directly competing with Palantir in government and industrial use cases [7] Group 3: Snowflake's Developments - Snowflake's near-term outlook for Q1 2026 is influenced by corporate activities and partnerships, including potential acquisitions to enhance its AI monitoring capabilities and a data partnership with Palantir [5][6] - The leadership transition at Snowflake has led to improved sentiment around enterprise tech spending, emphasizing the importance of data platforms that support advanced analytics and generative AI [4] Group 4: C3.ai's Positioning - C3.ai has shown solid growth in generative AI offerings and is expanding its customer base in both enterprise and public sectors, with narrowing analyst expectations for future losses indicating progress toward profitability [10] - The company's performance is closely linked to federal spending trends, particularly in government and defense sectors, making it a focal point for investors despite market volatility [11]

Core Viewpoint - Snowflake Inc. is reportedly in talks to acquire Observe for approximately $1 billion, which would be its largest acquisition to date, and analysts view this as a strategically logical move with low integration risk [1][2][3]. Financial Position - Snowflake has a strong balance sheet with $4.4 billion in cash and $2.1 billion in net cash as of the end of the third fiscal quarter, making the rumored acquisition financially manageable [2]. Strategic Implications - The acquisition of Observe, an AI-native observability startup, would enhance Snowflake's full-stack observability capabilities, allowing enterprises to resolve issues more quickly and reduce costs [3][4]. - Competing with Databricks, which has been expanding through acquisitions, necessitates that Snowflake also pursue similar strategies to remain competitive in the market [3]. Integration Considerations - The technical integration of Observe should be seamless since it is built natively on Snowflake, presenting a low level of integration risk while strategically entering a competitive application monitoring market [4].

Core Insights - Snowflake is in talks to acquire the application monitoring startup Observe, with a deal valuation of approximately $1 billion, which would be the largest acquisition since Snowflake's inception [1] Company Overview - Observe specializes in the development and sales of observability tools that assist developers in monitoring the operational status of their applications, enabling timely detection of program faults and service interruptions [1] Competitive Landscape - If the acquisition is completed, Snowflake will face more direct competition from major software companies such as Datadog and Splunk in the big data analytics service sector [1]