Snowflake: An AI Goldmine, Preparing For Accumulation


  • For Q1 FY2025, Snowflake reported a mixed set of numbers, with a sizable beat on revenue intertwined with a glaring earnings miss.
  • Driven by strength in its core business, Snowflake beat top-line expectations by 5.5%, and management raised full-year revenue guidance.
  • However, Snowflake is experiencing some margin deterioration due to increased investments in AI and changes to its compensation model for sales reps.
  • In reaction to this report, Snowflake stock has dropped back into the $150s.
Mixed race boy holding paper snowflake

Hill Street Studios/DigitalVision via Getty Images

Brief Review Of Snowflake’s Q1 FY25 Earnings

In my previous report on Snowflake (NYSE:SNOW), I labeled management’s FY2025 guidance as a welcome gift for their new CEO:

Despite the guided deceleration in SNOW’s business for 2024, I continue to see a

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.

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