Snowflake: Major Cracks In The Armor

Summary:

  • Snowflake is facing major cracks in the armor due to missed EPS targets, rising costs from AI initiatives, and slowing sales growth rates.
  • The company’s shift to incorporate AI features has not led to expected revenue growth, similar to other companies in the AI enterprise software sector.
  • The stocks rich valuation at 13x forward sales, ongoing cybersecurity issues, and decelerating growth rates suggest the stock is likely headed lower, despite a bright future in AI.
Viking Warrior with Axe and Shield in Snowy Woods

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Snowflake, Inc. (NYSE:SNOW) has fallen to yearly lows and the company is starting to show some major cracks in the armor. The data cloud company is poised to benefit from AI, but the transition to incorporate AI features has led


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