Snowflake Stocks Surge 47% Amid Upgraded Ratings

Snowflake shares surge 47% in six months, prompting analysts to upgrade the stock to 'outperform' with a $235 price target. Optimism grows before the upcoming earnings report on February 26.

Date: 23-02-2025

AI Rating: 6

Earnings Per Share (EPS): The report does not provide EPS figures. However, it highlights that Snowflake's net loss has grown to over $1.1 billion on a trailing-12-month basis, indicating ongoing financial challenges.

Revenue Growth: Snowflake's product revenue grew by 29% year-over-year in fiscal Q3, which is a positive indicator for potential future growth. Management has even raised its product revenue outlook for the full year, showcasing strong consumer demand and management confidence.

Profit Margins: While there is mention of the need to improve margins, specific margin data is not provided. The report indicates that Snowflake's ability to innovate and manage costs will be crucial for sustaining returns beyond 2025.

Free Cash Flow (FCF): The report does not discuss free cash flow metrics, leaving it unassessed in the context of Snowflake's performance.

Return on Equity (ROE): There is no mention of ROE, indicating a lack of focus on this measurement in the analysis.

In summary, the optimistic sentiment surrounding Snowflake is primarily driven by a notable revenue growth forecast and positive analyst upgrades. However, challenges such as increasing net losses and the necessity to enhance profit margins are crucial aspects investors need to monitor.

Stocks: SNOW