Snowflake (NYSE:SNOW) just dropped a bombshell, and Wall Street couldn’t look away. Shares skyrocketed over 30% on Thursdayits best single-day gain since going public in 2020. What sparked the frenzy? A juiced-up product revenue forecast of $3.43 billion for fiscal 2025, up from $3.36 billion. And that’s not all: Snowflake unveiled a game-changing partnership with Anthropic, letting customers supercharge AI applications with state-of-the-art language models directly on its cloud platform. New CEO Sridhar Ramaswamy, the brain behind Snowflake’s AI pivot, is proving he’s not just running the playbookhe’s rewriting it.
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Warning! GuruFocus has detected 4 Warning Signs with SNOW.
The company’s fiscal Q3 numbers are hard to ignore: product revenue surged 29% to $900.3 million, while remaining performance obligationsa juicy pipeline of future revenueshot up 55% to $5.7 billion. With a net revenue retention rate of 127%, Snowflake isn’t just acquiring new clients; it’s squeezing more value from existing ones. Major players like the Forbes Global 2000 are doubling down, drawn to Snowflake’s pitch-perfect balance of simplicity and cost-effectiveness. Analysts have taken the hint20 hiked their price targets, with a median projection of $185 signaling a potential 43% upside.
But here’s where it gets exciting for investors. Snowflake’s AI-first strategy isn’t just a buzzword; it’s a growth engine. The Anthropic deal is more than a headlineit’s a glimpse into a future where AI integrates seamlessly into enterprise data platforms. This isn’t about chasing trends; it’s about leading them. With a market cap now flirting with $56.4 billion and the new leadership firing on all cylinders, Snowflake is making it clear: they’re not just in the gamethey’re changing it. Investors, take note.
This article first appeared on GuruFocus.
