timothy sykes logo

Stock News

Snowflake’s Unexpected Surge: Should You Buy?

Timothy SykesAvatar
Written by Timothy Sykes Reviewed by Bryce Tuohey Fact-checked by Matt Monaco
Snowflake’s Unexpected Surge: Should You Buy? Thumbnail

Snowflake Inc. saw a stock boost as the company expanded partnerships with gaming and media sectors, enhancing its market position. On Thursday, Snowflake Inc.’s stocks have been trading up by 10.09 percent.

  • The latest quarterly earnings report from Snowflake exceeded analyst expectations, with an EPS of 30 cents compared to the anticipated 18 cents. Revenue also outstripped predictions, reaching $986.8M.

Candlestick Chart

Live Update At 11:37:54 EST: On Thursday, February 27, 2025 Snowflake Inc. stock [NYSE: SNOW] is trending up by 10.09%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

  • Snowflake announced a new partnership with Microsoft to incorporate OpenAI’s advanced models into its Cortex AI, further boosting its AI capabilities.

  • Several firms, including BTIG and Canaccord, have upgraded Snowflake to a ‘Buy’ rating and raised their price targets to $220, reflecting optimism about the company’s revenue growth and AI initiatives.

  • BTIG analyst Gray Powell upgraded his assessment to ‘Buy’ with expectations that Snowflake’s product revenue could positively impact growth in the coming fiscal years.

  • Snowflake is in talks with OpenAI to allow its customers direct access to the latter’s AI models, which could bypass traditional API integrations and enhance the platform’s utility.

Snowflake’s Recent Earnings: A Quick Dive

As traders navigate the volatile world of financial markets, they must embrace a mindset that focuses on strategy and resilience. As millionaire penny stock trader and teacher Tim Sykes, says, “The goal is not to win every trade but to protect your capital and keep moving forward.” This approach underscores the importance of safeguarding assets while learning from losses and maintaining progress. By prioritizing capital protection over short-term victories, traders can develop techniques that sustain long-term success in their trading endeavors.

In its latest earnings report, Snowflake has shown numbers that would make any investor perk up. The company’s Q4 earnings per share of 30 cents far exceeded the expected 18 cents. This isn’t just about standing on a strong footing; Snowflake reported a remarkable revenue of $986.8M, topping the predicted $956.26M. These results have highlighted Snowflake’s growing influence in the data and AI industries, serving more than 11,000 customers worldwide.

Furthermore, the company’s product revenue hit $943 million, marking an impressive 28% year-over-year increase. However, it’s the remaining performance obligations, which totaled a staggering $6.9 billion, that truly portray the organization’s future potential. With its strategic collaborations and massive revenue stream, Snowflake is a formidable contender in its industry.

Analyzing these metrics, it’s clear that management’s focus on increasing gross margins, reported at 67.1%, is paying dividends. While profitability metrics like the EBIT margin (-36) and other loss indicators suggest there’s work to be done, the gross margin demonstrates strong foundational potential.

On the balance, as per valuation measures, the total enterprise value stands at $53.3B, with a price-to-sales ratio of 16.07. These figures highlight a company that is highly valued, not just due to its current performance but the potential gains it promises for the future.

Reviewing Snowflake’s financial statements reveals a company investing significantly in its future. With net investments in properties and business purchases showing hefty negative figures, Snowflake is clearly banking on its strategic bets for long-term gains. Alongside significant stock-based compensation and capital stock repurchases, the company’s readiness to invest in human capital and maintain shareholder value is evident.

The cash flow from operations remains strong at $101.7M, even as free cash flow resides at $88.27M. It tells the story of a business ready to juggle multiple priorities while delivering consistent growth.

Partnerships and Price Target Upgrades

What’s truly moving Snowflake forward are the partnerships and endorsements coming its way. Its new partnership with Microsoft to leverage OpenAI’s advanced models within Snowflake Cortex AI signals a deeper dive into AI integrations. These developments are likely to make customers’ lives much easier by enabling them to innovate more efficiently.

Most impressively, a slew of analysts have acknowledged the company’s potential. With BTIG and Canaccord upgrading their ratings to ‘Buy’ and setting a price target at $220, it’s evident there’s a consensus on Snowflake’s growth capabilities.

More Breaking News

Snowflake’s discussions with OpenAI to bypass traditional APIs could potentially offer its customers a unique value proposition. This could be a game-changer, providing seamless access to AI services in a way that’s faster and potentially cheaper than current solutions.

The Broader Picture: Stock Movement and Expectations

Comparing the recent price movements, Snowflake’s stock has seen notable fluctuations but remains admired for its resilience and growth potential. This pattern is likely due to the blend of positive news surrounding its earnings, partnerships, and analyst upgrades.

This means that if you look at the charts, you’ll notice a steady rise following these announcements, even though day-to-day fluctuations can be daunting for the uninitiated. In their most positive light, such market actions could indicate investor confidence and anticipation of future growth.

Financial metrics present a mixed bag but align with a company in its growth phase. The absence of a stable P/E ratio and high price-to-cash flow multiple (at 134.9) may suggest a speculative angle, yet the burgeoning revenue streams can’t be ignored.

Despite the complex financial jargon, the story is simple. Snowflake is investing in its future, and its market moves reflect this adaptability. As they deepen potential partnerships and grow their customer base, investors appear to trust this narrative.

Financial Journalistic Recap: Growth on the Horizon?

Snowflake is navigating its course with bold choices and strategic decisions, and this is paying off in terms of recognition and market performance. The earnings exceeded expectations, partnerships promise future growth, and analysts’ upgrades bring renewed confidence.

In essence, the company’s journey embraces a narrative of innovation, future-ready alignments, and adaptive strategies. For those watching from the sidelines, these milestones suggest a company not satisfied with resting on laurels but pushing towards new heights. It’s less about past performance and more about positioning for tomorrow.

Snowflake’s stock is living proof of how modern enterprises can pivot, adopt fresh technologies, and partner effectively to drum up excitement and deliver value. For many traders, this culminates in a big question: is it finally time to jump in, stay out, or find opportunity within the flux? As millionaire penny stock trader and teacher Tim Sykes, says, “There is always another play around the corner; don’t chase just because you feel FOMO.” Thus, smart trading choices require careful consideration amidst Snowflake’s evolving strategies.

By making data easefully accessible and teaming with tech giants, Snowflake is changing the rules of the game, one strategic partnership at a time. With eyes set on myriad future opportunities, the perfect storm of growth and promise seems to be brewing on the horizon for Snowflake and its stakeholders.

This content is produced using automated systems designed to deliver timely stock news. All material is reviewed by our editorial team and is provided solely for informational and entertainment purposes. It does not constitute professional investment advice. For additional details, please refer to our [Terms of Service]

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.
Dig into StocksToTrade’s watchlists here:

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”