SNOW Stock Recent News

The ability for artificial intelligence (AI)-driven software and systems to learn without human intervention gives this technology a seemingly limitless ceiling. Very clear headwinds are beginning to mount for Wall Street's AI darling, Nvidia.

Snowflake reported better-than-expected results last week, but guidance was in line with the market's outlook. The stock sank sharply in the wake of that report.

Warren Buffett recognizes that a company's reputation a critical asset. A bungled software update from CrowdStrike led to millions of crashing PCs and global IT disruption.

While many stocks are back at or close to their all-time highs, some, like Snowflake Inc. NYSE: SNOW, remain a long way away. The data storage giant is one of those tech companies that IPO'd during the pandemic when rates were super low and skyrocketed immediately.

The streak of negative news continued at Snowflake after the company reported somewhat softer-than-expected FY25 Q2 results. The bear thesis centered around increasing competitive threats, decreasing margins, slowing revenue growth, rich valuation, and high stock-based compensation gained significant traction recently. I believe investors became overly pessimistic towards the company, disregarding its strong growth prospects and placing too much emphasis on not well-supported threats.

Snowflake has seen 30% YoY revenue growth but a 40% YTD stock decline, raising concerns about its growth and profitability. Despite beating revenue estimates, Snowflake's margins are under pressure, and buybacks mainly offset stock-based compensation dilution, limiting stock price impact. Valuation remains high at 11x next year's sales, while its path to profitability is questionable. The fair value may be at best at today's levels.

U.S. stock futures were slightly lower this morning, with the Dow futures falling around 0.1% on Tuesday.

Snowflake stock has struggled this year after a cybersecurity incident impacted its customers as well as fears AI could disrupt its business. The company's Q2 results were solid but did not alleviate investor fears.

Recently, Zacks.com users have been paying close attention to Snowflake (SNOW). This makes it worthwhile to examine what the stock has in store.

No-Headquarters/BOZEMAN, Mont.--(BUSINESS WIRE)-- #snowflakesummit--Snowflake (NYSE: SNOW), the AI Data Cloud company, will attend the Goldman Sachs Communacopia + Technology Conference. Chief Financial Officer Mike Scarpelli will present at the conference on Thursday, September 12th, at 9:30 a.m. PT. An event webcast will be accessible on the investor relations section of the Snowflake website at https://investors.snowflake.com and archived on the Snowflake site for a period of 30 days. About Snowflake Snowflake.