Is Snowflake a Buy After Its Stock Soared 30%?

Core Insights - Snowflake's stock is down 11% in 2024 but surged over 30% after reporting strong Q3 FY 2025 results [1][2] - The company is experiencing growth in its data cloud product, which is crucial for AI model training [2] - Snowflake's partnership with Anthropic to integrate its Claude model is expected to enhance revenue potential from its large customer base [3] Financial Performance - In Q3 FY 2025, Snowflake's product revenue increased by 29% year over year to $900 million [4] - Remaining performance obligations (RPO) rose 55% to $5.7 billion, indicating sustained growth potential [4] - Management expects product revenue growth of 23% in Q4, reflecting a trend of slowing growth as the company matures [6] Profitability Concerns - Snowflake reported an operating loss of $366 million in the quarter, with a 39% loss margin, which has remained unchanged over the years [8] - The lack of focus on profitability amidst slowing growth raises concerns about management's priorities [9] - The company is trading at a premium valuation of 17 times sales, which may prompt investors to reconsider their positions [10]