Snowflake Q2 Earnings: AI Winter Hits Hard And Fast (Rating Downgrade)

Summary:

  • Snowflake investors are experiencing an unanticipated AI winter.
  • Snowflake’s recent earnings release corroborates intensely competitive headwinds.
  • SNOW’s AI capabilities could be tested as Databricks, and the hyperscalers invest more aggressively to gain more share.
  • SNOW’s extremely expensive valuation metrics suggest the market likely has no patience for disappointment.
  • I argue why I was wrong to upgrade SNOW in my previous update. I assess that SNOW could be stuck in an AI winter for a while. Read on.

Artificial intelligence green circuit board

J Studios

Snowflake’s AI Winter

Snowflake Inc. (NYSE:SNOW) investors felt the AI winter in August 2024, as the stock of the data lakehouse company scored a new low. The recent dip-buying from SNOW’s August lows saw a significant reversal this


Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSFT 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.

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