No-Headquarters/BOZEMAN, Mont.--(BUSINESS WIRE)---- $SNOW #TheAIDataCloud--Snowflake, the AI Data Cloud company, today announced a new collaboration with U.S. Figure Skating, the national governing body for the sport in the United States, focused on advancing the organization's data and AI capabilities across business operations, athlete performance insights, and the long-term development pipeline of figure skating. "Data plays an increasingly important role in how we operate, grow and support athletes at e ...

Core Viewpoint - The stock of Snowflake, an AI data cloud specialist, is experiencing a decline in momentum despite its rapid growth and potential in the AI sector, raising questions about its future performance [1][2]. Financial Performance - Snowflake's fiscal Q3 revenue reached $1.21 billion, reflecting a 29% year-over-year increase, primarily driven by a 29% growth in product revenue, which amounted to $1.16 billion [3]. - The company reported a non-GAAP product gross margin of 76% in fiscal Q3 and an adjusted operating income of $131.3 million, up from $58.9 million in the previous year [8]. - Snowflake's adjusted free cash flow increased from $86.8 million in the year-ago quarter to $136.4 million [8]. Customer Metrics - The company ended fiscal Q3 with 688 customers contributing over $1 million in trailing-12-month product revenue, marking a 29% increase year-over-year [3]. - Snowflake's net revenue retention rate was 125% at the end of the period, indicating strong customer loyalty and usage [4]. - Remaining performance obligations (RPO) totaled $7.88 billion, up 37% year-over-year, suggesting growing customer demand for Snowflake's platform [5]. Demand Trends - The company has observed strong momentum in key metrics, particularly with the adoption of its enterprise AI agent, Snowflake Intelligence, which experienced the fastest ramp in product adoption in the company's history [6]. Profitability Concerns - Despite strong revenue growth, Snowflake faces challenges with profitability, reporting a net loss of over $1 billion for the trailing nine months, which is worse than the $963 million net loss in the same period last year [9]. - The stock-based compensation is significantly impacting GAAP profitability, contributing to investor concerns [9]. Market Capitalization and Outlook - The current market capitalization of Snowflake is approximately $57 billion, which raises questions about whether its growth and profitability profile justifies this valuation [10]. - For a positive reassessment of the stock, significant acceleration in top-line growth and a clear path to substantial GAAP profits would be necessary, though the latter appears unlikely in the near term [10].

About Snowflake Snowflake is the platform for the AI era, making it easy for enterprises to innovate faster and get more value from data. More than 12,600 customers around the globe, including hundreds of the world's largest companies, use Snowflake's AI Data Cloud to build, use and share data, applications and AI. With Snowflake, data and AI are transformative for everyone. Learn more at snowflake.com (NYSE: SNOW). No-Headquarters/BOZEMAN, Mont.--(BUSINESS WIRE)--Snowflake (NYSE: SNOW), the AI Data Cloud c ...

Core Viewpoint - Snowflake's stock has experienced a slight decline recently, reflecting investor caution regarding tech valuations amidst mixed signals in enterprise spending [3] Group 1: AI Price Prediction - An AI price-prediction model forecasts a modest increase in Snowflake's stock price over the next 60 days, with a base-case projection of $214.21 by mid-April [4][10] - The model suggests that Snowflake could potentially reach $800 by 2030, indicating long-term growth potential [4] Group 2: Revenue Model and Market Position - Snowflake's consumption-based revenue model is a key strength, charging customers based on actual data storage and compute usage, which aligns well with the unpredictable nature of AI workloads [6] - The Data Cloud's capabilities position Snowflake as a critical component for AI data pipelines, facilitating the integration of structured and unstructured data for advanced models [8] - Partnerships with Nvidia and Anthropic have enhanced Snowflake's ability to monetize AI, with committed deals reflecting growth in workload [8] Group 3: Trading and Investment Opportunities - Investors can incrementally build exposure to Snowflake through commission-free fractional shares on platforms like SoFi, starting with as little as $5 [5][9] - Active traders may utilize prop firms such as Apex Trader Funding to access larger funded futures accounts, enhancing trading flexibility [7][9]

Core Insights - Snowflake's BUILD event represents a significant platform for discussing cloud architecture, large-scale parallel computing, and data processing in the Data + AI field [3][4] - The introduction of BUILD in China signifies the integration of international technology with the local developer ecosystem, highlighting the importance of Chinese developers in global innovation [5] Group 1: Event Overview - The BUILD event is a tribute to the core developer activity of building, evolving into a leading platform for cloud and data discussions [3] - BUILD is not just a conference name; it symbolizes extreme performance and limitless scalability in the Data + AI sector [4] Group 2: Developer Empowerment - The event showcases practical cases from top global experts, focusing on topics like Agentic AI and multi-modal data processing, providing developers with insights from concept to prototype [7] - BUILD aims to accelerate the transition from development to production for Chinese developers, offering tailored solutions for various application scenarios [7] Group 3: Future Engagement - The upcoming BUILD 2025 event will further engage the Chinese technical community, providing insights into how Snowflake empowers business growth in the AI era [9] - Snowflake's AI data cloud is already utilized by 766 of the Fortune Global 2000 companies, indicating its significant role in helping businesses innovate and derive value from data [10]

Market Overview - US stocks closed mixed with the Dow Jones Industrial Average dropping almost 0.1%, the S&P 500 rising 0.1%, and the Nasdaq Composite edging up 0.2% as traders anticipated a potential rate cut by the Federal Reserve in December [1] Federal Reserve Expectations - Wall Street is increasingly convinced that the Federal Reserve will ease monetary policy at its upcoming meeting, with an 89% probability of a rate cut priced in by traders following a weaker-than-expected ADP private employment report [3] - Speculation surrounds Kevin Hassett potentially replacing Jerome Powell as Fed chair, which could lead to a more dovish stance at the Fed, although market skepticism remains regarding Hassett's appointment [4] Labor Market Insights - Jobless claims unexpectedly fell to a three-year low, indicating some strength in the labor market, while November saw the highest corporate layoffs in three years [5] Company Performance - Meta's shares rose over 3% as CEO Mark Zuckerberg plans significant cuts to the metaverse unit, while Nvidia's stock gained over 2% [2] - Salesforce shares surged after the company raised its outlook, exceeding analyst expectations, whereas Snowflake's stock fell due to revenue guidance that did not meet expectations [6]

Core Insights - Snowflake Inc reported strong third-quarter results with revenue of $1.21 billion, surpassing analyst expectations of $1.18 billion, and adjusted earnings of 35 cents per share, exceeding estimates of 31 cents per share [1][2] Financial Performance - The company expects fourth-quarter product revenue to be between $1.195 billion and $1.20 billion, reflecting a year-over-year increase of approximately 27% [3] - Adjusted operating margin is projected to be 7% in the fourth quarter, a decrease from 11% in the third quarter, which has negatively impacted share prices [3] Market Reaction - Following the earnings announcement, Snowflake shares fell by 11.2%, trading at $235.20 [3] Analyst Ratings and Price Targets - Keybanc analyst Eric Heath maintained an Overweight rating and raised the price target from $275 to $285 [5] - Baird analyst William Power also maintained an Outperform rating, increasing the price target from $260 to $270 [5] - Other analysts, including those from Cantor Fitzgerald, Morgan Stanley, Wells Fargo, Scotiabank, Canaccord Genuity, and Stifel, have similarly maintained positive ratings while raising their price targets, with the highest target reaching $299 [5]

Market Overview - US stocks experienced slight gains, with the Dow Jones Industrial Average and S&P 500 both increasing by approximately 0.2%, while the Nasdaq Composite also rose nearly 0.2% [1] - There is a growing belief on Wall Street that the Federal Reserve will move towards easing monetary policy, with an 89% probability of a rate cut being priced in by traders following disappointing economic data [2] Federal Reserve Expectations - Speculation surrounds Kevin Hassett potentially replacing Jerome Powell as Fed chair, which could lead to a more dovish monetary policy, supported by President Trump's push for rapid rate cuts [3] - Jobless claims showed an unexpected decline, but corporate layoffs in November reached their highest level in three years, indicating mixed signals in the labor market [4] Earnings Reports - Salesforce shares surged after the company raised its outlook, exceeding analyst expectations, while Snowflake's stock fell due to revenue guidance that did not meet expectations despite a strengthened partnership with Anthropic [5] - Upcoming earnings reports from Dollar General and Kroger are anticipated to provide insights into consumer resilience, alongside Hewlett-Packard Enterprise's earnings [6]

Group 1: Nvidia - Nvidia is close to achieving a significant lobbying victory in Washington, with CEO Jensen Huang advocating on Capitol Hill [3][4] - A proposed measure, the GAIN AI Act, which would have restricted Nvidia's ability to sell advanced AI chips to China and other adversaries, was excluded from the must-pass defense legislation [4][5] - President Trump praised Jensen Huang for his leadership at Nvidia, highlighting the importance of energy production for economic growth and the AI industry [5][6] Group 2: Snowflake - Snowflake reported a 29% year-over-year revenue growth to $1.21 billion, exceeding expectations, with adjusted EPS of $0.35 [7] - Despite strong performance metrics, Snowflake's Q4 product revenue guidance of $1.195B to $1.2B disappointed investors, indicating concerns about stabilizing growth rather than acceleration [8] - The company is heavily investing in AI, announcing partnerships with Anthropic, Accenture, and Amazon Web Services, including a $200 million deal with Anthropic [9] Group 3: Social Media Regulations in Australia - Meta's Facebook and Instagram began deactivating accounts of users under 16 in Australia ahead of a new social media ban [10] - Approximately 150,000 Facebook accounts and 350,000 Instagram accounts are expected to be affected by this regulation [10] - Other platforms, including Snapchat, TikTok, and YouTube, must comply with similar regulations, facing potential fines of up to $33 million for non-compliance [11]

Economic Outlook - US stock futures are stable as Wall Street anticipates a potential rate cut from the Federal Reserve in December, with an 89% probability priced in by traders following weak economic data [1][2] - Speculation surrounds Kevin Hassett potentially replacing Jerome Powell as Fed chair, which could lead to a more dovish monetary policy, although market participants express skepticism about this transition [3][16][19] Labor Market Insights - Upcoming labor market data, including initial jobless claims and job cuts, is expected to provide further insights into economic conditions, with particular attention on the delayed September PCE reading for inflation [4] Corporate Earnings - Salesforce (CRM) shares rose after exceeding earnings expectations with a diluted EPS of $3.25 and revenue of $10.27 billion, marking an 8.6% year-over-year increase [5][12] - Snowflake (SNOW) shares fell over 8% after reporting a narrower loss but providing disappointing revenue guidance, with Q3 revenue growing 29% year-over-year to $1.15 billion, slightly below expectations [5][20][21] - Five Below (FIVE) reported a 23.1% increase in net sales to $1 billion, with same-store sales up 12.4% year-over-year, leading to a stock price increase [13][15] Retail Sector Performance - Retailers like Dollar General and Kroger are expected to provide insights into consumer resilience, while Hewlett-Packard Enterprise's earnings are also anticipated [6] AI Investment Narrative - BlackRock and Bank of America assert that the current AI investment cycle is driven by genuine corporate investment and productivity gains, contrasting with the speculative nature of the dot-com bubble [7][8] - The scale of corporate investment in AI is significant enough to potentially elevate US GDP growth above the historical 2% trend [8]