From Data To Insights: Snowflake’s AI Evolution And Investment Potential
Contributor since 2020 / 5440 Followers
Summary:
- Snowflake’s stock struggled earlier in the year due to disappointing FY 2025 guidance and CEO Frank Slootman’s retirement.
- New CEO Sridhar Ramaswamy’s AI expertise aims to close the gap with Databricks and achieve Snowflake’s ambitious $10 billion revenue goal by FY 2029.
- Snowflake Cortex enhances data workflows with AI but lacks the advanced functionality of Databricks Mosaic AI, necessitating further investment in AI capabilities.
- A strategic partnership with Anthropic aims to integrate advanced LLMs, enhancing Snowflake’s AI offerings and potentially driving significant ROI for customers.
Sundry Photography
When I wrote about Snowflake (NYSE:SNOW) in early March this year, I discussed why the stock had dropped from its highs after reporting its fourth-quarter fiscal 2024 earnings on February 28, 2024. Those reasons included disappointing earnings results
Analyst’s Disclosure: I/we have a beneficial long position in the shares of SNOW either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.