Snowflake Inc. logo centered on a sleek, dark blue digital background with illuminated network connections, symbolizing cloud data technology. Key Points Snowflake is part of the trend in which accelerating AI adoption drives growth. Management's Q4 guidance is cautious and analysts are calling the December price pullback is an opportunity. Analysts are narrowing their target range to around the consensus, calling for a 30% upside. Interested in Salesforce Inc.? Here are five stocks we like better. ...

Core Insights - Snowflake (SNOW) shares have declined by 11.4% since the announcement of its third-quarter fiscal 2026 results, primarily due to a hyperscaler outage that impacted revenues by approximately $1 million to $2 million [1][8] - Despite the recent decline, SNOW shares have increased by 27.9% over the past year, outperforming the Zacks Computer and Technology sector's growth of 25% and the Zacks Internet Software industry's decline of 1% [2] Financial Performance - For the fourth quarter of fiscal 2026, Snowflake expects product revenues between $1.195 billion and $1.2 billion, indicating a year-over-year growth of 27% [15] - The company anticipates total product revenues of $4.446 billion for fiscal 2026, reflecting a 28% year-over-year growth [16] - The Zacks Consensus Estimate for fourth-quarter fiscal 2026 revenues is currently at $1.23 billion, suggesting a growth of 24.99% year-over-year [15] Customer and Market Growth - Snowflake reported a 20% year-over-year growth in the number of customers, reaching 12,621 in the fiscal third quarter of 2026 [11] - The company has 688 customers with trailing 12-month product revenues exceeding $1 million, a 29% increase year-over-year [11] - More than 7,300 customers are utilizing Snowflake's AI and machine learning technology weekly [9] Product and Technology Advancements - Snowflake has introduced 370 new GA product capabilities year-to-date, marking a 35% increase over the previous year [5] - AI has significantly influenced the company's performance, accounting for 50% of bookings signed during the fiscal third quarter [6] - The introduction of Snowflake Intelligence, an agentic AI platform, has seen rapid adoption with 1,200 customers leveraging its capabilities [7] Strategic Partnerships - Snowflake's strong partner base includes major players such as SAP, Microsoft, Amazon Web Services (AWS), NVIDIA, and others, which has been a significant growth driver [10] - The company has surpassed $2 billion in AWS Marketplace sales, doubling year-over-year growth [12] - Recent collaborations with NVIDIA and SAP aim to enhance AI capabilities and data integration [13][14] Valuation and Market Position - Snowflake shares are currently considered overvalued, with a forward 12-month Price/Sales ratio of 14.55X compared to the Internet Software industry's 4.83X [18] - The consensus estimate for earnings per share is pegged at 29 cents, indicating a decline of 3.33% year-over-year [16]

Core Insights - Snowflake Inc. (NYSE:SNOW) experienced a significant decline of 11.41% on Thursday, closing at $234.77, as investors engaged in profit-taking after a strong earnings performance was already anticipated for Q3 FY2026 [1] Financial Performance - The company reported a narrowed net loss of $293.9 million, a 9.3% improvement from $324.2 million in the same period last year [2] - Revenues surged by 29% year-on-year, reaching $1.2 billion, up from $942 million, primarily driven by a 29% growth in product revenues [3] - For the upcoming fourth quarter, Snowflake expects product revenues to increase by 27%, projecting a range of $1.195 billion to $1.2 billion [5] Strategic Developments - Snowflake's enterprise AI agent, Snowflake Intelligence, has seen the fastest adoption in the company's history, transforming business interactions with data and providing real-time actionable intelligence [4] - The company is enhancing its data lifecycle capabilities through strategic partnerships with leading AI model providers and cloud platforms [4]

Snowflake Inc. ( SNOW ) and Palantir Technologies Inc. ( PLTR ) have emerged as software’s strongest AI darlings in the past year. Despite both playing mission critical roles in enabling the ongoing AI transformation, theyAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (oth ...

Core Viewpoint - Goldman Sachs maintains a "Buy" rating on Snowflake and raises the target price to $275, believing that market concerns over slowing revenue growth overshadow the company's robust core business and accelerated AI monetization [1][3]. Revenue Performance - Snowflake's latest earnings report shows a 29% year-over-year increase in product revenue, slightly exceeding market expectations, although the growth rate has slowed compared to the first half of the year [3][8]. - The company achieved a milestone by reaching an annualized AI revenue of $100 million a quarter ahead of schedule, with AI-related product adoption rates rising sharply [6][8]. Customer Retention and Growth Potential - The core customer retention rate (NER) remains healthy at 125%, indicating strong customer loyalty [5][8]. - Record new contract obligations (RPO) reached $949 million in the third quarter, with 615 new customers added, significantly surpassing the previous quarter's 343 [8]. AI as a Growth Catalyst - AI is viewed as a "force multiplier" for Snowflake's business, with over 1,200 customers currently using Snowflake Intelligence, the fastest adopted new product in the company's history [6]. - 50% of new bookings in the quarter were influenced by AI factors, and 58% of customers are using Snowflake's AI features weekly [6]. Market Sentiment and Valuation Discrepancies - While Goldman Sachs is optimistic about Snowflake's long-term prospects, Nomura expresses caution, suggesting that the current valuation reflects optimistic growth expectations and may face pressure if AI adoption slows [5][9]. - Nomura maintains a "Hold" rating with a target price of $238, arguing that the market has priced in perfect conditions for AI-driven growth, while also raising concerns about potential shifts in data analysis paradigms due to advancements in AI [9].

Core Viewpoint - Snowflake reported a fiscal third-quarter loss despite impressive revenue growth, leading to a decline in stock price as the market reacts to its high valuation and ongoing net losses [1][2]. Financial Performance - Fiscal Q3 revenue increased by 29% year over year to $1.21 billion, but the company reported a GAAP net loss of $294 million, slightly better than the $324 million loss in the same quarter of the previous year [4][5]. - For the first nine months of fiscal 2026, Snowflake's GAAP net loss reached approximately $1.02 billion, compared to about $958 million in the same period a year earlier [5]. - Stock-based compensation was a significant expense, totaling $442 million in the quarter, which is over one-third of revenue [6]. Growth Trends - Product revenue rose 29% year over year to $1.16 billion in fiscal Q3, down from 32% growth in fiscal Q2, indicating a deceleration in growth [9][10]. - Management's guidance for fiscal Q4 product revenue is between $1.195 billion and $1.2 billion, suggesting a growth rate of about 27% from the prior year [9]. Valuation Concerns - Snowflake's shares are trading at approximately 20 times sales, despite the company continuing to report significant losses, indicating that the market has priced in expectations for strong future revenue growth and profitability [11][12]. - The current valuation leaves limited room for potential missteps, such as slower adoption of AI offerings or a significant deceleration in revenue growth [12].

Group 1: Market Performance - The three major US stock indices closed mixed, with the Dow Jones down 0.07%, the Nasdaq up 0.22%, and the S&P 500 up 0.11% [1] - Large tech stocks showed mixed performance, with Meta and Oracle rising over 3%, Nvidia up over 2%, and Intel down over 7% [1] - The Nasdaq Golden Dragon China Index rose 0.39%, with notable gains from stocks like Wanwu Xingsheng up 8.96% and Dingdong Maicai up 6.56% [1] Group 2: Macroeconomic Insights - The Director of the White House National Economic Council, Hassett, indicated a potential interest rate cut of about 25 basis points at the next Federal Reserve meeting [2] - This statement may impact global liquidity expectations and should be monitored for its potential transmission effects on the A-share market risk appetite [3] Group 3: Commodity and Currency Markets - WTI crude oil surpassed $60 per barrel, increasing by 1.79% [4] - Gold prices fluctuated, breaking above $4250 per ounce and then dropping to $4240 per ounce, with a daily change of 0.42% and -0.09% respectively [4] - The British pound against the US dollar reached its highest level since October 24, rising 0.2% to $1.3373 [5] Group 4: Company Developments - Meta (formerly Facebook) plans to implement budget cuts of up to 30% for its metaverse division, affecting products like Meta Horizon Worlds and the Quest VR business line, with potential layoffs starting as early as January [6][11] - Following this news, Meta's stock rose over 5% in pre-market trading [12]

Group 1: US Stock Market Performance - The US stock market showed mixed results with the Dow Jones down 0.07%, Nasdaq up 0.22%, and S&P 500 up 0.11% [1][12] - Technology stocks had a varied performance, with Meta and Oracle rising over 3%, while Intel fell over 7% [1][12] - Snowflake's stock dropped 8.3% due to disappointing profit margin outlook, while UiPath surged 7.5% after exceeding Q3 expectations [1][12] Group 2: Individual Company Developments - Meta's CEO announced plans to cut up to 30% of investments in the metaverse-related business, leading to a pre-market rise of over 5% [1][12] - Dollar General raised its full-year earnings guidance, resulting in a 5.6% increase in its stock price [1][12] - Tiger Brokers reported record high Q3 revenue and non-GAAP net profit, with a pre-market surge of 9.2% [1][12] Group 3: Commodity and Cryptocurrency Markets - WTI crude oil prices surpassed $60 per barrel, increasing by 1.79% [3][14] - Bitcoin fell below $92,000, with a daily decline of 2.62% [3][14] - Gold prices fluctuated significantly, breaking through $4,250 per ounce before dropping to $4,240 [2][13] Group 4: Forex and Economic Policy - The British pound reached its highest level against the US dollar since October 24, rising 0.2% to $1.3373 [4][15] - The White House's economic advisor indicated a potential 25 basis point rate cut at the next Federal Reserve meeting [4][15] Group 5: Domestic Market Developments - Taobao's flash sale platform announced voluntary compliance with national standards for food delivery services, aiming to enhance service quality and consumer experience [10][21][22]

Market Overview - Major U.S. stock indices remained stable, with the S&P 500 and Nasdaq rising for three consecutive days, while the Dow Jones Industrial Average fell slightly by 31.96 points, or 0.07%, closing at 47,850.94 points [2] - The labor market showed mixed signals, with initial jobless claims dropping to a three-year low of 191,000, significantly below economists' expectations of 220,000 [4] - The Chicago Fed's model estimates the unemployment rate to remain around 4.4%, indicating a resilient labor market despite some concerns [4] Company Performance - In the technology sector, Meta's stock rose by 3.43% following news of a potential 30% budget cut for its Metaverse projects, while Amazon's stock fell by 1.41% due to ongoing discussions with the U.S. Postal Service [2] - Snowflake's stock plummeted by 11.41% as its fourth-quarter product revenue guidance fell short of high growth expectations [6] - Hormel Foods saw a stock increase of 3.82% as the company projected better-than-expected annual profits, while Dollar General's stock surged by 10.5% after raising its annual guidance [7] Commodity Performance - International oil prices increased, with light crude oil for January delivery rising by $0.72 to $59.67 per barrel, a 1.22% increase, and Brent crude for February delivery up by $0.59 to $63.26, a 0.94% increase [7] - Spot gold prices slightly rose by 0.1% to $4,210.49, while COMEX gold futures increased by 0.2%, settling at $4,243.00 [7]

Snowflake's stock slumped Thursday despite third-quarter results that topped analysts' expectations on the top and bottom lines. https://t.co/lN3diR2sLq ...