Snowflake’s stock surges after earnings beat forecasts. Snowflake Beat Revenue and Earnings in Q3.
As a reflection of the increasing demand for cloud-based data storage and analytics, Snowflake’s shares jumped more than 28% on Thursday after the data analytics provider increased its annual product revenue projection.
The company is headed for its best day since going public in 2020, despite a 35% decline in its shares this year.
If increases continue, its value is expected to rise by more than $12 billion, reaching a market cap of $43.3 billion.
The Bozeman, Montana-based company’s findings follow months after Sridhar Ramaswamy, who was previously SVP of AI at Snowflake, took over as CEO. Since then, analysts have been keeping an eye on how the company’s AI initiatives are developing under the new leadership.
On Wednesday, Snowflake announced a partnership with Anthropic that will enable its clients to use Anthropic’s huge language models on Snowflake’s cloud-based data platforms to improve their AI applications.
According to the company, the multi-year agreement would also enable Snowflake’s AI agents to do various tasks, including data analysis and visualization creation.
In contrast to its earlier estimate of $3.36 billion, the company now projects $3.43 billion in product revenue for 2025.
“It does not sound like the macro is getting dramatically better, but the better sales execution and new product momentum are helping Snowflake to deliver these results,” the analysts at Barclays stated in a note.
At least three analysts raised their ratings on the stock, while at least 20 analysts increased their PT for the stock. At $185, the median view represented a 43.3% increase.
In contrast to Datadog’s 67.01 and MongoDB’s 91.04, the company’s shares were trading at 147.32 times their 12-month ahead earnings forecasts.