Core Viewpoint - The recent decline in software stocks is attributed to valuation risk rather than fears of AI disruption, which may be an excuse for the sell-off [3][6][13]. Group 1: Market Performance - Many popular software stocks, including Palantir Technologies, Adobe, Salesforce, and ServiceNow, have seen declines of approximately 22% to 30% year-to-date in 2026 [2]. - Despite strong financial results and AI being a potential growth catalyst, these stocks have faced significant sell-offs [2][4]. Group 2: Valuation Risk - The concept of valuation risk suggests that stocks trading at high valuations may be subject to market corrections, even if their underlying fundamentals remain strong [7]. - The S&P 500's rise of 78% from 2023 to the end of 2025 has led to many investors being unfamiliar with the implications of valuation risk [7]. Group 3: Company-Specific Insights - Palantir's stock has increased over 80% since the beginning of 2025, with a price-to-sales ratio expanding by over 20% to 75, despite a 22% decline year-to-date [9]. - Adobe, Salesforce, and ServiceNow have also outperformed the S&P 500 over the past 15 years, despite recent declines [10]. Group 4: Broader Market Trends - Other software companies, such as Snowflake, CrowdStrike, and Shopify, exhibit high price-to-sales multiples (14, 23, and 13 respectively), raising concerns about their valuations given their current financial performance [12]. - The overall sell-off in software stocks may reflect a more discerning investor approach to evaluating competitive advantages and sustainability [13].

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Snowflake Inc. (SNOW) despite higher revenues, with a focus on how actual results compare to estimates impacting stock price [1][2]. Earnings Expectations - Snowflake is expected to report quarterly earnings of $0.27 per share, reflecting a year-over-year decrease of 10% [3]. - Revenue projections stand at $1.25 billion, indicating a 26.9% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the past 30 days, suggesting stability in analyst expectations [4]. - A positive Earnings ESP of +0.57% indicates that analysts have recently become more optimistic about Snowflake's earnings prospects [12]. Earnings Surprise History - In the last reported quarter, Snowflake exceeded the expected earnings of $0.31 per share by delivering $0.35, resulting in a surprise of +12.90% [13]. - The company has beaten consensus EPS estimates in each of the last four quarters [14]. Industry Context - Another company in the same industry, Workday (WDAY), is expected to report earnings of $2.3 per share, reflecting a year-over-year increase of 19.8% [18]. - Workday's revenue for the quarter is projected at $2.52 billion, up 14.1% from the previous year [18]. - Workday has an Earnings ESP of -3.86%, indicating a potential challenge in beating consensus EPS estimates despite a Zacks Rank of 2 (Buy) [19].

Snowflake Inc. (SNOW) closed at $177.10 in the latest trading session, marking a -2.85% move from the prior day. This change lagged the S&P 500's daily gain of 0.1%. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.14%. Coming into today, shares of the company had lost 13.35% in the past month. In that same time, the Computer and Technology sector lost 4.05%, while the S&P 500 lost 1.43%. The upcoming earnings release of Snowflake Inc. will be of great interest to investors. The ...

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard. Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences. At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000 ...

Group 1 - Major stock indices are experiencing declines, with Dow futures down 0.10%, S&P 500 futures down 0.27%, and Nasdaq futures down 0.59% [1] - Gold mining stocks are trading lower ahead of the market opening, with Harmony Gold down 4.2%, Newmont down 3%, Sibanye Stillwater down 5.8%, and Barrick Gold down 2.4% [1] - AI application stocks are also down, with SAP SE falling nearly 3%, AppLovin down over 2%, and Palantir and Snowflake both down over 1% [1] - Chinese concept stocks are seeing gains before the market opens, with Alibaba up 0.80%, Pinduoduo up 0.53%, NetEase up 0.19%, Baidu up 1.45%, and JD.com up 0.29% [1] - Spot gold briefly fell below $4900, trading down 1.40% at $4922.2 per ounce, while spot silver dropped over 4%, down 2.32% at $74.6 per ounce [1] Group 2 - SpaceX and its subsidiary xAI are reportedly participating in a highly classified Pentagon bidding process aimed at developing voice-controlled autonomous drone swarm technology [2] - Elon Musk announced that the Cybercab, which will not have pedals or a steering wheel, is set to begin production in April [2] - Apple has announced a significant upgrade for Apple Podcasts, introducing video podcast functionality this spring to enhance its presence in the video podcasting space [2] - Danaher is nearing a deal to acquire medical technology company Masimo for approximately $10 billion [2]

Group 1 - Major stock indices are experiencing declines, with Dow futures down 0.10%, S&P 500 futures down 0.27%, and Nasdaq futures down 0.59% [1] - Gold mining stocks are falling ahead of market opening, with Harmony Gold down 4.2%, Newmont down 3%, Sibanye Stillwater down 5.8%, and Barrick Gold down 2.4% [1] - AI application stocks are also declining, with AppLovin down over 2%, SAP SE down nearly 3%, and Palantir and Snowflake down over 1% [1] - Chinese concept stocks are seeing gains before market opening, with Alibaba up 0.80%, Pinduoduo up 0.53%, and Baidu up 1.45% [1] - Spot gold briefly fell below $4900, currently down 1.40% at $4922.2 per ounce, while spot silver is down 2.32% at $74.6 per ounce [1] Group 2 - SpaceX and its subsidiary xAI are reportedly participating in a highly classified Pentagon bidding process to develop voice-controlled autonomous drone swarm technology, as part of a $100 million challenge initiated by the Department of Defense [2] - Elon Musk announced that the Cybercab, which will not have pedals or a steering wheel, is set to begin production in April [2] - Apple has announced a significant upgrade for Apple Podcasts, introducing video podcast functionality to enhance its presence in the video podcasting space [2] - Danaher is nearing a deal to acquire medical technology company Masimo for approximately $10 billion [2]

Group 1 - Popular Chinese concept stocks mostly rose before the market opened on February 17, with Hesai up nearly 4%, Kingsoft Cloud up over 3%, and Baidu up over 1% [1] - AI application stocks declined, with SAP SE down nearly 3%, Applovin down nearly 2%, and both Palantir and Snowflake down over 1% [1]

Core Insights - Snowflake (SNOW) shares are considered overvalued with a Value Score of F, trading at a forward Price/Sales (P/S) ratio of 10.80X compared to the industry average of 3.90X [1] - The company has experienced an 8% decline in share price over the last six months, underperforming the Zacks Computer and Technology sector, which appreciated by 7.8% [3] - Despite the decline, Snowflake has outperformed the Zacks Internet Software industry, which saw a 22.4% decline in the same period, driven by strong customer growth and platform adoption [4] Valuation - SNOW's forward P/S ratio of 10.80X is higher than competitors like Amazon (2.61X) and Oracle (10.37X) [1][7] - The company reported a 20% year-over-year growth in customer numbers, reaching 12,621 in Q3 FY26, with 688 customers generating over $1 million in trailing 12-month product revenues, a 29% increase year-over-year [8][7] Performance - Snowflake's net revenue retention rate was 125% in Q3 FY26, indicating strong customer loyalty and usage of its platform [4][7] - The company anticipates product revenue growth of 27%-28% for Q4 and FY26, despite facing macroeconomic challenges [7] AI and Product Development - Snowflake is benefiting from its role in the enterprise AI revolution, with over 7,300 customers using its AI and ML technology weekly [9] - AI influenced 50% of bookings in Q3 FY26, and the company achieved a $100 million AI revenue run rate earlier than expected [10] - Recent product enhancements include new AI capabilities and an AI-powered Business Intelligence Agent for United Rentals [11][12] Partnerships - Snowflake has expanded its partnership with Alphabet's Google Cloud to enhance product integration and market strategy, allowing for secure generative AI applications [13][14] Guidance - For Q4 FY26, Snowflake expects product revenues between $1.195 billion and $1.2 billion, indicating a 27% year-over-year growth [17] - For FY26, the expected product revenues are $4.446 billion, reflecting a 28% year-over-year growth [18] Competition - Snowflake faces stiff competition from major players like Amazon and Oracle, both of which are also expanding their AI capabilities [19] - Oracle has launched role-based AI agents, while Amazon's AI initiatives have gained significant momentum, with AWS's custom chips business exceeding a $10 billion annual revenue run rate [20][21]

Group 1 - The article highlights Uttam as a growth-oriented investment analyst focusing on the technology sector, particularly in semiconductors, artificial intelligence, and cloud software [1] - Uttam's research also encompasses other sectors such as MedTech, Defense Tech, and Renewable Energy, indicating a broad analytical scope [1] - The Pragmatic Optimist Newsletter, co-authored by Uttam and his wife Amrita Roy, is recognized and cited by major publications like the Wall Street Journal and Forbes, showcasing its influence in the investment community [1] Group 2 - Prior to his research career, Uttam led teams at major technology firms in Silicon Valley, including Apple and Google, which adds credibility to his insights in the technology sector [1]

Group 1 - The article highlights Uttam as a growth-oriented investment analyst focusing on the technology sector, particularly in semiconductors, artificial intelligence, and cloud software [1] - Uttam's research also encompasses other sectors such as MedTech, Defense Tech, and Renewable Energy, indicating a broad analytical scope [1] - The Pragmatic Optimist Newsletter, co-authored by Uttam and Amrita Roy, is recognized and cited by major publications like the Wall Street Journal and Forbes, showcasing its influence in the investment community [1] Group 2 - Prior to his research career, Uttam gained experience in Silicon Valley, leading teams at major technology firms including Apple and Google, which adds credibility to his insights [1]