Snowflake Stock Up 49%. Learn Whether AI Agents Make $SNOW A Buy

Core Viewpoint - Snowflake Inc's stock has increased over 49% in 2025, with potential for further growth if the company continues to exceed expectations and raise guidance despite concerns about an AI bubble and competition from Databricks [2] Financial Performance - Snowflake reported product revenue of $1.09 billion for the last quarter, reflecting a 32% year-over-year increase, with remaining performance obligations totaling $6.9 billion [3] - The second quarter revenue reached $1.14 billion, also up 32% year-over-year, surpassing FactSet expectations by $50 million, with adjusted earnings of 35 cents per share, exceeding consensus by eight cents [5] - For the current quarter, Snowflake forecasts revenue in a range with a midpoint of $1.126 billion, which is $60 million higher than consensus estimates [6] Leadership and Strategy - The new CEO, Sridhar Ramaswamy, is credited with reviving growth and driving product innovation, particularly in AI services [9][11] - Snowflake has launched Cortex AI, targeting financial services, which aims to provide AI tools for banks and investment firms [13][14] Competitive Landscape - Snowflake is facing strong competition from Databricks, which has developed multiple industry-specific platforms since 2022 [15] - Despite competition, analysts believe both companies can coexist in their respective markets, with Snowflake expanding into Databricks' territory to capture AI growth [24][25] Analyst Sentiment - Analysts have expressed bullish views on Snowflake, with Evercore ISI raising its price target to $280, citing accelerating revenue growth and operating margin leverage [23] - Morgan Stanley views Snowflake as a leading player in the data modernization theme, emphasizing the importance of data transformation for AI initiatives [26]