Snowflake Inc. reported strong earnings, but shares fell ~15% due to concerns around forward guidance and revenue growth deceleration. Stock-based compensation expenses are still too high, impacting profitability and shareholder value, while the company's valuation remains unsustainable based on its forward P/E. Despite the potential of AI data cloud, Snowflake's slowing growth, high costs, and...
Snowflake's shares fell 15% after the Q2 earnings report, with strong EPS and revenue beat, but a Q3 guidance that was perceived poorly by the market. Snowflake generated good net retention and free cash flow in Q2 and had strong customer acquisition. Snowflake guided for 26% FCF margins for FY 2024. Shares now trade at a 58% discount to the longer-term average P/S ratio.
Snowflake investors are experiencing an unanticipated AI winter. Snowflake's recent earnings release corroborates intensely competitive headwinds. SNOW's AI capabilities could be tested as Databricks, and the hyperscalers invest more aggressively to gain more share.
Snowflake Inc.'s stock price took a hit despite beating market consensus due to concerns about a cyberattack in May. The cyberattack impacted some customers, but Snowflake's platform was not breached; the incident is considered a one-time event. Snowflake reported strong booking growth driven by new customer acquisitions, AI investments, and high retention rates, with a one-year price target of...
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