Should You Buy Snowflake Stock Before Dec. 3? The Answer Might Surprise You.

Core Insights - Snowflake stock has significantly outperformed major indices and competitors, with a 48% gain in 2025, driven by strong operating results [3] - The company has launched Cortex AI, a platform that centralizes AI development tools and services, enhancing its position in the AI market [3][4] - Snowflake's customer base has grown, with 12,062 customers reported, and a notable increase in AI product usage [6] Financial Performance - In Q2 of fiscal 2026, Snowflake generated $1.09 billion in product revenue, marking a 32% year-over-year increase, an acceleration from previous quarters [7] - Management anticipates Q3 revenue around $1.13 billion, reflecting a 26% year-over-year increase, indicating potential slowing momentum [8] - The company reported a net loss of $297.9 million in Q2 due to increased operating expenses, particularly in marketing [9] Valuation and Market Position - Snowflake's stock is currently trading at a price-to-sales ratio of 18.9, which is considered high compared to major cloud providers [12] - Competitors like Google Cloud, Microsoft Azure, and Oracle Cloud have shown faster revenue growth rates than Snowflake in the most recent quarter [14] - The company's valuation may not justify the premium given its expected slowing revenue growth and significant GAAP losses [15]