Latest news with #SnowflakeIntelligence
Yahoo
09-07-2025
- Business
- Yahoo
Analyst: Snowflake (SNOW)'s AI Breakthroughs Could Power Long-Term Growth
Snowflake Inc. (NYSE:SNOW) is one of the . On July 3, Monness analyst Brian White maintained a Buy rating on the stock and set a price target of $245.00. White's rating reflects Snowflake's impressive innovations and strategic advancements. At a recent summit, the company introduced several new features, including Snowflake Intelligence and Snowflake Openflow. Both of these features are anticipated to enhance Snowflake's AI capabilities and data management offerings, and also strengthen its position in the competitive software landscape. CEO Sridhar Ramaswamy has been particularly good for the company. This is particularly true considering Snowflake has accelerated its pace of innovation, especially in the realm of generative AI, under his leadership. This focus on generative AI is likely to yield long-term benefits for Snowflake, particularly as the broader industry values data-driven, consumption-based models. All in all, the company's approach to integrating AI with data strategy emphasizes its growth potential and justifies the Buy rating. Snowflake Inc. (NYSE:SNOW) is an artificial intelligence data cloud company benefiting from the AI boom as data warehouses are a critical component in making AI useful for enterprises. While we acknowledge the potential of SNOW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks in the Spotlight and Disclosure: None.
Yahoo
04-07-2025
- Business
- Yahoo
Weekly Option Windfall: Snowflake Call Spread Boasts 31% Profit Potential
The artificial intelligence boom has kicked into high gear. Snowflake is one of the companies leading the AI movement. Its cloud-based platform includes AI Data Cloud, which enables customers to consolidate data to drive meaningful business insights, build related applications, and solve complex business problems. The stock is displaying relative strength and hitting a series of 52-week highs. Recent price movement is a sign of strength as we head further into 2025. Increasing volume has attracted investor attention as buying pressure accumulates in this leading stock. Snowflake is part of the Zacks Internet - Software industry group, which currently ranks in the top 19% out of more than 250 industries. Because this group is ranked in the top half of all Zacks Ranked Industries, we expect it to outperform the market over the next 3 to 6 months, just as it has so far this year: Image Source: Zacks Investment Research Historical research studies suggest that approximately half of a stock's price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. It's no secret that investing in stocks that are part of leading industry groups can give us a leg up relative to the market. By focusing on leading stocks within the top industries, we can dramatically improve our stock-picking success. Snowflake solves long-standing challenges related to data silos and governance by providing secure access and sharing capabilities, often without moving or copying the data across multiple clouds. The company's customers can combine datasets, enhance data science efforts, and monetize insights with near-zero infrastructure maintenance. In the first-quarter, the company introduced more than 125 product capabilities to the market, a 100% increase year-over-year. Products like Generation 2 Warehouses, Adaptive Compute, Openflow and Snowflake Intelligence are helping drive new enterprise adoption. Snowflake's customer-centric, consumption-based pricing model ensures users only pay for the resources they use. This provides Snowflake with a recurring, high-margin revenue stream. Partnerships and acquisitions have been a key catalyst for Snowflake. The company's rich partner base includes the likes of NVIDIA, Amazon, Microsoft, ServiceNow and Meta Platforms. Snowflake SNOW has built up an impressive reporting history, surpassing earnings estimates in each of the past four quarters. The company delivered a trailing four-quarter average surprise of 34.7%. Growth trends remain quite favorable, with Snowflake's bottom line expected to leap 27.7% in fiscal 2026 to $1.06 per share. Revenues for the year are projected to surge 24.6% to $4.52 billion. Image Source: Zacks Investment Research While there are many ways to take advantage of a bullish move in SNOW stock, options provide us with flexibility, enabling us to tailor our strategy to the current market environment. When done correctly, trading options provides huge profit opportunities with limited risk, making options one of the most versatile investment vehicles. Before we analyze today's trade, let's review some option fundamentals as a refresher. There is no need to worry about complex mathematical formulas or equations. Over the years I've found that the more complicated a strategy is, the less likely it is to work over the long run. Options are standardized contracts that give the buyer the right – but not the obligation – to buy or sell the underlying stock at a fixed price, which is known as the strike price. A call option gives the buyer the right to buy a particular security, while a put option gives the buyer the right to sell the same. The investor who purchases an option, whether a put or call, is the option buyer, while the investor who sells a put or call is the seller or writer. These contracts are valid for a specific period of time which ends on expiration day. There are weekly options, monthly options, and even LEAPS options which are longer-term options that have an expiration date of greater than one year. Option spreads can be an extremely effective strategy. Debit spreads are implemented by purchasing a call option and selling a related call option with a higher strike price. These types of trades are limited risk trades because the short option is 'covered' by the option purchase. Below we're going to explore a call option spread strategy. Snowflake has been outperforming the market off the April lows and currently meets our criteria for initiating a bullish call option spread position. Image Source: StockCharts The table below displays the risk/reward profile for this trade. SNOW is trading at $217.34/share at the time of this writing. This trade involves purchasing the August 190-strike call at 30.2 points (yellow box), and selling the August 200-strike call at 22.6 points (orange box) for a total cost of 7.6 points. As option contracts represent 100 shares of the underlying security, this would translate to a total cost of just $760 per spread (brown box). Image Source: Zacks Investment Research The top (blue) row in the lower section shows the performance of SNOW stock based on different percentage scenarios at expiration. The last (purple) row shows the corresponding percentage return for our debit spread trade. We can see that regardless of whether SNOW increases in price, remains flat, or even loses 5% from our entry, our option spread trade will produce a 31.6% return. These are types of odds I like to have in my favor when trading options. 1) The Option Sale Provides Downside Protection The sale of a call option results in cash being credited to your brokerage account. This reduces the cost basis of the option purchase and provides downside protection in the event the price of the underlying stock declines. 2) Risk is Reduced In the SNOW trade just presented, the sale of the 200-strike call reduced the risk of the 190-strike purchase from $3,020 to just $760 per contract. 3) Allows Us to Maintain Positions During Volatile Markets The downside protection provided by the call option sale helps us maintain our spread trade during heightened volatility. Naked option purchases may force us to sell early in order to prevent large losses. 4) Spreads Can Be Profitable If Stock Goes Up or Down Option spreads can be profitable even if the underlying stock decreases or remains flat, providing us with an entirely new dimension of money-making opportunities. Remember that the call option sold through this strategy profits as the price of the underlying stock declines, providing us with a cushion during market pullbacks. Option spreads are a safe way to use the leverage inherent in options. Your risk is limited to the price paid for the spread. The call option spread strategy is an excellent way to take advantage of the bullish move in SNOW as the stock looks primed to continue its outperformance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snowflake Inc. (SNOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
23-06-2025
- Business
- Yahoo
Snowflake Deepens AI Integration: Is the Growth Thesis Strengthening?
Snowflake SNOW is deepening its AI integration across platform layers, driving strong adoption and strengthening its competitive position in enterprise infrastructure. Latest innovations like Snowflake Intelligence and Data Science Agent, SnowConvert AI and Cortex AISQL, as well as Cortex Knowledge Extensions, are expected to help SNOW expand clientele. Currently, more than 5,200 accounts use Snowflake's AI and machine learning solutions on a weekly launch of Cortex Gen2 expands Snowflake's platform capabilities with improved analytics performance and adaptive compute to support scalable AI workloads. Openflow introduces a managed ingestion layer for structured, unstructured and streaming data-enhancing interoperability and data movement across the AI Data Cloud. These innovations are designed to accelerate developer adoption and broaden AI applications. Snowflake is leveraging these platform upgrades to drive adoption across enterprise functions. The company's partnership with Acxiom enables Real ID-based customer activation inside Snowflake's clean rooms, supporting AI-driven campaigns without data movement. Design giant Canva has adopted Snowflake's AI stack to personalize user experiences, streamline lead routing and scale global product velocity. These wins reflect the expanding relevance of SNOW's AI infrastructure across marketing, design and B2B operations. Snowflake faces rising competition from Palantir Technologies PLTR and Datadog DDOG, both of which are strengthening their AI infrastructure and enterprise data capabilities. Palantir is advancing its position through its Artificial Intelligence Platform (AIP), which enables secure deployment of large language models across regulated environments. AIP integrates governance, explainability and operational control, helping enterprises adopt AI at scale. Palantir's commercial momentum and deep presence in mission-critical sectors position it as a full-stack competitor in AI-native infrastructure. Datadog is reinforcing its developer-first model with expanded observability capabilities, including AI-driven telemetry pipelines, diagnostics and real-time alerting. Its platform supports cloud-native enterprises managing dynamic workloads and increasingly overlaps with Snowflake's AI Data Cloud stack. Datadog's continued investments in GenAI integrations and predictive analytics enhance its competitive position in enterprise-scale data environments. Snowflake shares have appreciated 37.2% year to date, outperforming the broader Zacks Computer & Technology sector's return of 0.5% and the Zacks Internet Software industry's increase of 11.3%. Image Source: Zacks Investment Research Snowflake stock is trading at a premium, with a forward 12-month Price/Sales of 14.43X compared with the industry's 5.62X. SNOW has a Value score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for second-quarter fiscal 2026 earnings is pegged at 26 cents per share, down by a penny over the past 30 days, indicating 44.44% year-over-year growth Snowflake Inc. price-consensus-chart | Snowflake Inc. Quote The consensus mark for SNOW's fiscal 2026 earnings is pegged at $1.06 per share, which has declined by 6 cents over the past 30 days. The figure indicates a 27.71% increase year over year. Snowflake currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snowflake Inc. (SNOW) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Palantir Technologies Inc. (PLTR) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Business Insider
10-06-2025
- Business
- Business Insider
Snowflake Stock (SNOW) Continues to See Buy Ratings Pour In from Top Analysts
Analysts appear to have a positive view of software stock Snowflake (SNOW), as they see strong growth potential ahead. Indeed, five-star Jefferies analyst Brent Thill recently raised his price target on the stock from $220 to $250 and kept a Buy rating. While Snowflake didn't make any major announcements at its recent user conference, Jefferies noted that the company's quick innovation is driving excitement. One key example is Snowflake Intelligence, which is an early-stage product that is 'generating strong buzz' and could help the company expand its market presence. Confident Investing Starts Here: Separately, five-star analyst William Power from Baird also reiterated a Buy rating on Snowflake and pointed to several reasons for his bullish view. To begin with, the company's new Cortex/ AI product is expected to drive future growth, and Snowflake's focus on improving data access and analytics gives it an edge in today's data-driven world. At the same time, Snowflake is expanding its distribution network and strengthening its sales strategies. Another growth driver is the Gen2 Warehouses offering, which provides faster computing and better pricing. In addition, five-star Stifel Nicolaus analyst Brad Reback shared this optimism and maintained a Buy rating after the user conference. Reback noted that customers and partners are increasingly choosing Snowflake over competitors like Databricks for data science, engineering, and machine learning projects. Customers also gave very positive feedback on Snowpark, and many are excited about Openflow, which is a new tool that could remove the need for older middleware ETL platforms. Finally, Snowflake continues to lead in its core SQL business while gaining traction in newer tech. Is SNOW a Good Buy Right Now? Overall, analysts have a Strong Buy consensus rating on SNOW stock based on 34 Buys, six Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SNOW price target of $226.74 per share implies 7.6% upside potential.
Business Insider
09-06-2025
- Business
- Business Insider
Snowflake price target raised to $250 from $220 at Jefferies
Jefferies raised the firm's price target on Snowflake (SNOW) to $250 from $220 and keeps a Buy rating on the shares. The company made no major announcements at its user conference, but its innovation momentum is strong and fueling optimism, the analyst tells investors in a research note. The firm says Snowflake Intelligence is 'early but generating strong buzz and could help broaden' the company's reach. Jefferies sees potential upside to estimates. Confident Investing Starts Here:
