Snowflake Shares Surge On Strong AI-Driven Growth: ETFs in Focus

Core Insights - Snowflake Inc. reported quarterly earnings of $0.30 per share, exceeding the Zacks Consensus Estimate of $0.17 per share, although down from $0.35 per share a year ago [1] - The company achieved revenues of $986.77 million for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 3.58% and up from $774.7 million year-over-year [2] - Snowflake projected fiscal 2026 product revenue growth of 24%, reaching $4.28 billion, exceeding analysts' expectations of $4.21 billion [3] Financial Performance - The fourth-quarter revenue of $986.8 million exceeded the estimated $955.9 million, driven by rising demand for cloud-based solutions [5] - For the first quarter, Snowflake forecasts product revenue between $955 million and $960 million, outperforming analysts' projection of $949.3 million [3] AI Integration and Market Trends - The integration of OpenAI's models into Snowflake Cortex AI enhances its appeal to businesses seeking AI-powered data management solutions [4] - The ongoing shift towards cloud-based solutions is increasing demand for Snowflake's services [5] Management Changes - CFO Michael Scarpelli will retire but will remain until a successor is appointed, after which he will transition to an advisory role [6] Analyst Ratings and Price Targets - The average price target for Snowflake Inc. was $191.89, with a range from $115.00 to $225.00, prior to the earnings release [7] - Snowflake Inc. has an average brokerage recommendation (ABR) of 1.63, indicating a strong buy sentiment, compared to an ABR of 1.72 a month ago [8] - Of the 43 recommendations, 29 are Strong Buy, accounting for 67.44% of all recommendations, an increase from 65.12% a month ago [9] ETFs Exposure - Several exchange-traded funds (ETFs) with significant exposure to Snowflake include Spear Alpha ETF (SPRX), TrueShares Technology, AI & Deep Learning ETF (LRNZ), and Global X Cloud Computing ETF (CLOU) [10]