Latest news with #Snowflake
Yahoo
8 hours ago
- Business
- Yahoo
Better Artificial Intelligence (AI) Stock: Palantir vs. Snowflake
Shares of both Palantir and Snowflake have delivered healthy gains in 2025 despite the broader stock market weakness. Both companies benefit from the growing adoption of AI tools within their industries. 10 stocks we like better than Palantir Technologies › Technology stocks have been under pressure this year due to the tariff-fueled turmoil, as evident from the flat performance of the Nasdaq Composite so far in 2025 (it was down as much as 24% at one point). But shares of Palantir Technologies (NASDAQ: PLTR) and Snowflake (NYSE: SNOW) have defied the sell-off and have clocked impressive gains. Palantir stock has shot up 63% this year despite bouts of volatility. Snowflake stock has jumped close to 32%, aided by a solid set of results recently. Their efforts related to artificial intelligence (AI) are a common factor driving the gains of both companies. While both stocks are doing well, if you are looking to add just one of these two AI stocks to your portfolio right now, which one should it be? Let's find out. Palantir Technologies helps commercial and government clients integrate generative AI capabilities into their operations with its Artificial Intelligence Platform (AIP), which was launched roughly two years ago. This platform has turned out to be a hit among customers because of the productivity and efficiency gains it delivers, reducing operational costs. According to various third-party assessments, Palantir is considered to be the leading provider of AI software platforms, which are a collection of infrastructure and tools that are needed to develop, train, deploy, and manage AI applications. The market seems to agree: The release of AIP has led to a sharp acceleration in the company's growth. Revenue in the first quarter of 2023 (just before it launched its AIP), increased by 18% from the year-ago quarter. That jumped significantly to 39% year over year in the first quarter of 2025, a clear indication that the company is capitalizing on the fast-growing market for AI software platforms. Its rapidly improving revenue pipeline indicates that its growth is likely to pick up its pace. The software specialist's remaining deal value (RDV), which refers to the total value of contracts that it is yet to fulfill, increased 45% from the year-ago period to $6 billion. With RDV growth outpacing the increase in its top line, it suggests that the company is landing more contracts than it is fulfilling. With this signal for even stronger growth in the future, the company bumped up its annual guidance as well. Moreover, Palantir's earnings are increasing faster than its revenue due to the company's favorable unit economics. Customers have shown a tendency to expand their adoption of the business's services. This explains the year-over-year increase of 8 percentage points in its adjusted operating margin in the previous quarter, which eventually led to a 62% spike in its earnings. With the market for AI software platforms forecast to generate annual revenue of $153 billion in 2028, according to data analytics specialist IDC, there is a solid chance Palantir will keep growing at elevated levels thanks to AI. Snowflake originally designed its data cloud platform to help customers securely store, consolidate, and access their data in a single source. The company wisely transitioned to allow them to build and deploy AI models and applications using their stored data. Snowflake has been investing in graphics processing units (GPUs) from chipmakers to run popular AI models, with which its customers can build AI agents, AI assistants, document processing apps, and other types of applications. This business model lets customers use its AI infrastructure and software stack on a pay-as-you-go basis, eliminating the costs of buying expensive GPUs and managing that infrastructure. Snowflake's AI offerings allow clients to unlock more value from the data they have stored on its platform. Almost 45% of its customers are already using its AI tools. Customer count increased by 19% year over year in the first quarter. And the pool of customers that could deploy its AI solutions is likely to keep growing in the long run, suggesting that there is a solid possibility of an acceleration in the company's growth. Product revenue in the first quarter increased 26% from the year-ago period, while its remaining performance obligations grew much faster at 34% to $6.7 billion, thanks to an increase in spending by existing customers as well as the addition of new customers. The $342 billion addressable market that Snowflake sees for its data cloud platform by 2028 indicates that it has tremendous room for growth, and AI could help it corner a chunk of that market. So, like Palantir, Snowflake is poised to benefit from the secular growth in cloud-based AI services. But will it be able to deliver more upside than its rival? We see that both Palantir and Snowflake are registering healthy growth rates, and they could do better in the future as their revenue pipelines improve because of AI. However, Palantir's revenue is growing at a faster pace than Snowflake's, while the latter's bottom-line growth of 71% was better than Palantir's. The big factor that separates both companies is their valuation. Snowflake's stock is significantly cheaper than Palantir's. Both companies have expensive valuations, but their growth and prospects justify that. So the choice between the two comes down to investors' risk tolerance. Those who can accept more risk and are willing to endure volatility can consider Palantir, while Snowflake's relatively cheaper valuation means it could be ideal for investors who are looking for a fast-growing company but aren't willing to pay Palantir's multiples. Before you buy stock in Palantir Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Palantir Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies and Snowflake. The Motley Fool has a disclosure policy. Better Artificial Intelligence (AI) Stock: Palantir vs. Snowflake was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
17 hours ago
- Business
- Business Insider
Diversification Strategy Sparks Bullish Impetus in Nebius Group Stock (NBIS)
When I first invested in Nebius Group (NBIS) earlier this year, I approached it with cautious optimism—hyper- growth stocks carry inherent risk. Today, with the stock up over 50%, I remain confident and recently raised my 12-month price target to $60, implying further upside of over 50%. Confident Investing Starts Here: While its EV/Sales multiple above 50x may appear steep, it's less relevant for a vertically integrated AI infrastructure leader positioned to capitalize on current momentum. In my view, Nebius remains one of the most compelling growth stories in tech today. Nebius's Unstoppable Growth Drives Investor Frenzy Nebius's recent growth is off the charts. Nebius posted exceptional growth in Q1 FY2025, reporting $55.3 million in revenue —a 385% year-over-year increase—driven by surging global demand for AI and generative computing solutions. Management projects annual recurring revenue (ARR) between $750 million and $1 billion by year-end, underscoring the company's ambitious trajectory. What sets Nebius apart is its diversified, vertically integrated approach. Beyond its core AI cloud services, the company operates in several high-growth areas: Avride, an autonomous mobility venture; Toloka, a data-labeling and AI development platform backed by Jeff Bezos's venture arm; and TripleTen, an edtech startup focused on tech career reskilling. This strategic breadth positions Nebius to tap into multiple revenue streams within the expanding AI ecosystem. While some still associate the company with its Yandex origins, Nebius has taken definitive steps to establish its independence, restructuring in 2022, relocating its headquarters to Amsterdam, and relisting on Nasdaq. Its $700 million funding round in December, led by investors including NVIDIA and Accel, affirms growing confidence in Nebius as a credible and emerging leader in global AI infrastructure. Investors Await Rewards as Profitability Approaches While Nebius continues to invest aggressively, it is beginning to demonstrate operating leverage. In the same quarter that delivered standout revenue growth, the company reduced its adjusted EBITDA loss from $70.9 million a year ago to $62.6 million—an encouraging sign of improving cost efficiency. A year ago, operating expenses stood at an unsustainable 827% of revenue; that figure has since declined to 334%. Though still high, the downward trend points toward greater operational discipline. Nebius's cloud-based model is inherently scalable, allowing margins to expand as revenue grows and fixed costs are spread across a larger customer base. Management is targeting adjusted EBITDA profitability in the second half of FY2025—a goal that appears increasingly attainable given the company's accelerating top-line growth and improving cost structure Valuation Is Always Relative Let's tackle the elephant in the room—valuation. Based on an EV/Sales multiple of approximately 50x, Nebius appears expensive. For reference, Snowflake (SNOW) had a near-peak multiple of around 150x EV/Sales in early 2021 and fell rapidly to around 20x as revenues scaled. It's reasonable to expect Nebius's valuation will experience a similar development. Currently, Nebius stock exhibits extreme bullishness, as indicated by technical indicators, including the 14-day RSI, which stands at around 70. High volatility and irrational exuberance are typical among rapidly growing stocks, so investors should prepare for volatility, even when it's unlikely or difficult to ascertain, by examining the stock's price performance relative to its peers. Sentiment is always a risk with highly valued hyper-growth plays. However, when I consider the company's peers, Databricks or CoreWeave, Nebius's valuation is not entirely out of sync with the valuation models I commonly see across the AI infrastructure space. High multiples today can come back to earth in the near future as revenues move on up, making the current premium worthwhile. Is Nebius a Good Stock to Buy? On Wall Street, Nebius has a consensus Strong Buy rating based on three Buys, zero Holds, and zero Sells. The average NBIS stock price target of $52.33 indicates a 37% upside potential over the next 12 months. However, if it reaches $60, we're looking at a return of over 50% within 12 months. I'm Sticking to My Guns on Nebius I continue to view Nebius stock as one of the more compelling high-growth opportunities in today's market. While the stock may appear volatile and expensive by traditional metrics, its strong revenue growth, improving margins, strategic geopolitical positioning, and diversified revenue streams justify the current valuation. I maintain a bullish price target of $60, reflecting my confidence in management's execution capabilities and the potential for a favorable macro environment next year. For investors seeking high-risk, high-reward opportunities, Nebius stands out as a resilient and promising player in the AI space.
Yahoo
a day ago
- Business
- Yahoo
Yuki Releases First Industry Guide to Snowflake Optimization, Helping Data Teams Save 30-60% Without Manual Tuning
SAN FRANCISCO, May 30, 2025 (GLOBE NEWSWIRE) -- Yuki, the leader in automated cost optimization for Snowflake, has released its first flagship gated asset: The Ultimate Guide to Snowflake Optimization (2025 Edition), a hands-on playbook for data teams, FinOps leaders, and platform owners navigating the growing complexity (and cost) of large-scale Snowflake environments. The guide breaks down the root causes of Snowflake overspend from idle warehouses and ingestion traps to runaway cloud services charges and shares actionable strategies that have helped leading teams cut compute costs by 30–60% without sacrificing performance. 'Snowflake transformed the data stack but cost control hasn't kept up,' said Ido Arieli Noga, Co-Founder and CEO of Yuki. 'Too many teams are drowning in dashboards, tuning settings by hand, or relying on visibility tools that don't actually optimize anything. This guide is about taking back control and showing how real automation changes the game.' Key Takeaways from the Guide: Why traditional FinOps is broken and why dashboards aren't enough. 6+ Snowflake join optimization techniques to slash query costs. How hidden services like ingestion and metadata lookups quietly drain budgets. Real-world cost benchmarks (e.g. $11,500/month for a single 2XL warehouse) and how to prevent them. The ROI of replacing manual tuning with real-time automation from tools like Yuki. Built for Data Teams at Scale This new guide comes on the heels of Yuki's launch in the AWS Marketplace and reflects the company's continued push to make enterprise-grade cost control accessible, fast, and fully automated. Trusted by large data teams, Yuki delivers dynamic warehouse optimization, plug-and-play integration, and immediate ROI, without code changes or performance tradeoffs. Download the guide: Snowflake Cost Optimization Guide Get a free Snowflake efficiency assessment About YukiYuki is the real-time optimization platform for Snowflake. We eliminate compute waste, maximize performance, and keep your data platform lean, without the dashboards, manual tuning, or operational overhead. One connection string, zero manual effort, 30%+ savings. Learn more at ContactPerry TapieroPublic Relationspr@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Upturn
a day ago
- Business
- Business Upturn
Yuki Releases First Industry Guide to Snowflake Optimization, Helping Data Teams Save 30-60% Without Manual Tuning
SAN FRANCISCO, May 30, 2025 (GLOBE NEWSWIRE) — Yuki, the leader in automated cost optimization for Snowflake, has released its first flagship gated asset: The Ultimate Guide to Snowflake Optimization (2025 Edition) , a hands-on playbook for data teams, FinOps leaders, and platform owners navigating the growing complexity (and cost) of large-scale Snowflake environments. The guide breaks down the root causes of Snowflake overspend from idle warehouses and ingestion traps to runaway cloud services charges and shares actionable strategies that have helped leading teams cut compute costs by 30–60% without sacrificing performance. 'Snowflake transformed the data stack but cost control hasn't kept up,' said Ido Arieli Noga, Co-Founder and CEO of Yuki. 'Too many teams are drowning in dashboards, tuning settings by hand, or relying on visibility tools that don't actually optimize anything. This guide is about taking back control and showing how real automation changes the game.' Key Takeaways from the Guide: Why traditional FinOps is broken and why dashboards aren't enough. and why dashboards aren't enough. 6+ Snowflake join optimization techniques to slash query costs. to slash query costs. How hidden services like ingestion and metadata lookups quietly drain budgets. Real-world cost benchmarks (e.g. $11,500/month for a single 2XL warehouse) and how to prevent them. (e.g. $11,500/month for a single 2XL warehouse) and how to prevent them. The ROI of replacing manual tuning with real-time automation from tools like Yuki. Built for Data Teams at Scale This new guide comes on the heels of Yuki's launch in the AWS Marketplace and reflects the company's continued push to make enterprise-grade cost control accessible, fast, and fully automated. Trusted by large data teams, Yuki delivers dynamic warehouse optimization, plug-and-play integration, and immediate ROI, without code changes or performance tradeoffs. Download the guide: Snowflake Cost Optimization Guide Get a free Snowflake efficiency assessment About Yuki Yuki is the real-time optimization platform for Snowflake. We eliminate compute waste, maximize performance, and keep your data platform lean, without the dashboards, manual tuning, or operational overhead. One connection string, zero manual effort, 30%+ savings. Learn more at ContactPerry TapieroPublic Relations [email protected]
Yahoo
a day ago
- Business
- Yahoo
Yuki Releases First Industry Guide to Snowflake Optimization, Helping Data Teams Save 30-60% Without Manual Tuning
SAN FRANCISCO, May 30, 2025 (GLOBE NEWSWIRE) -- Yuki, the leader in automated cost optimization for Snowflake, has released its first flagship gated asset: The Ultimate Guide to Snowflake Optimization (2025 Edition), a hands-on playbook for data teams, FinOps leaders, and platform owners navigating the growing complexity (and cost) of large-scale Snowflake environments. The guide breaks down the root causes of Snowflake overspend from idle warehouses and ingestion traps to runaway cloud services charges and shares actionable strategies that have helped leading teams cut compute costs by 30–60% without sacrificing performance. 'Snowflake transformed the data stack but cost control hasn't kept up,' said Ido Arieli Noga, Co-Founder and CEO of Yuki. 'Too many teams are drowning in dashboards, tuning settings by hand, or relying on visibility tools that don't actually optimize anything. This guide is about taking back control and showing how real automation changes the game.' Key Takeaways from the Guide: Why traditional FinOps is broken and why dashboards aren't enough. 6+ Snowflake join optimization techniques to slash query costs. How hidden services like ingestion and metadata lookups quietly drain budgets. Real-world cost benchmarks (e.g. $11,500/month for a single 2XL warehouse) and how to prevent them. The ROI of replacing manual tuning with real-time automation from tools like Yuki. Built for Data Teams at Scale This new guide comes on the heels of Yuki's launch in the AWS Marketplace and reflects the company's continued push to make enterprise-grade cost control accessible, fast, and fully automated. Trusted by large data teams, Yuki delivers dynamic warehouse optimization, plug-and-play integration, and immediate ROI, without code changes or performance tradeoffs. Download the guide: Snowflake Cost Optimization Guide Get a free Snowflake efficiency assessment About YukiYuki is the real-time optimization platform for Snowflake. We eliminate compute waste, maximize performance, and keep your data platform lean, without the dashboards, manual tuning, or operational overhead. One connection string, zero manual effort, 30%+ savings. Learn more at ContactPerry TapieroPublic Relationspr@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
