Buy Snowflake Stock As AI Set To Power Earnings?

Core Insights - Snowflake Inc is set to announce its Q1 FY'26 earnings on May 21, 2024, with expected revenue growth of 21% year-over-year to approximately $1 billion and adjusted earnings forecasted at $0.21 per share, reflecting a 50% year-over-year increase [1] - The company is enhancing its AI capabilities through partnerships and acquisitions, including a multiyear partnership with Anthropic and the acquisition of AI startup Datavolo, aimed at simplifying AI application development for clients [1] - Snowflake's projected product revenues for the quarter are estimated to be between $955 million to $961 million [1] Financial Performance - Snowflake currently has a market capitalization of $61 billion, with revenue for the past twelve months reported at $3.6 billion [2] - The company has incurred operational losses of $1.5 billion and a net income loss of $1.3 billion [2] Earnings Reaction History - Over the last five years, Snowflake has recorded 18 earnings data points, with 10 positive and 8 negative one-day returns, resulting in a positive return rate of approximately 56% [5] - The positive return rate drops to 42% when considering the last three years [5] - The median of the 10 positive returns is 7.7%, while the median of the 8 negative returns is -14% [5]