Citi Notes Snowflake’s (SNOW) 30% Pull Back to Be an Overreaction

Core Viewpoint - Snowflake Inc. (NYSE:SNOW) is viewed as a promising investment opportunity despite a recent 30% stock pullback, which is considered an overreaction to its fiscal Q3 2025 results [1][4]. Group 1: Financial Performance - The recent pullback was attributed to a modest earnings beat, combined with sector challenges related to AI and valuation [2]. - Snowflake's AI-resilient consumption model is highlighted, with strong demand for its Cortex AI product, bolstered by significant $200 million deals with Anthropic and OpenAI [2][3]. Group 2: Customer Demand and Growth - The collaboration with Google Gemini and the substantial deals indicate strong customer demand for the Cortex, which is moving towards meaningful monetization following a new AI disclosure of $100 million [3]. - Snowflake Intelligence has shown a 20-30% increase in consumption for some financial and retail clients, with the customer base growing from 1,200 to over 2,000 [3]. Group 3: Market Position and Strategy - Snowflake provides cloud data warehousing software and operates a Data Cloud ecosystem that facilitates data sharing and value extraction from data silos [4]. - The company's platform supports various use cases, including data lakes, data engineering, and data science, positioning it well within the industry [4].