Adam Morton’s Post

Snowflake (SNOW) has been a darling of the tech world, renowned for its sky-high stock price and innovative cloud data storage solutions. However, recently, things have taken a frosty turn, with a flurry of changes and weaker-than-expected revenue guidance. Amid the financial whirlwind, the company reported fourth-quarter earnings results (EPS of $0.35 and Revenue of $774.6M, both better than expected) but provided a weaker-than-expected first-quarter revenue guidance. Additionally, Snowflake surprised investors with the announcement of their CEO's retirement. Known for his charismatic leadership style and innovative vision, Frank Slootman's exit sent shockwaves through the industry. Speculations swirled like snowflakes in a storm, leaving analysts and investors contemplating the implications of this sudden change at the top. The company's shares plummeted by 18% the following day. Although they exceeded analyst estimates for earnings per share, their revenue guidance for the upcoming year seemed to disappoint investors, leading to a decline in the stock price. Despite the frosty developments, some analysts view this as a necessary adjustment rather than a major crisis. Snowflake still demonstrates impressive performance metrics, with steady revenue growth, surpassing earnings per share estimates, and operating in a thriving business environment. As Snowflake navigates through this snowy landscape of change, one thing is clear - the tech industry will be observing closely. The question remains: will the company weather this storm and emerge stronger than before, or will it encounter challenges in the competitive tech terrain? Only time will reveal as Snowflake embarks on this new chapter without its iconic leader. #snowflakeinc #cloudcomputing #datacloud #techindustry #earningsreport #ceochange #managementchange #financialresults #clouddatastorage #techstocks #businessnews #investing #technologysector #dataanalytics #cloudservices #stockmarket #enterprisetechnology #wallstreet #notfinancialadvice

🚀 Is Snowflake the next big thing in AI and cloud tech? With an impressive 33% stock surge, it's capturing investor attention. But what's fueling this rise? As the company aggressively integrates AI solutions, it shows potential for substantial growth. Think cutting-edge tech, powerful partnerships, and increased customer adoption. 📈🤝 Yet, with a valuation at 16x sales, it's higher than the industry average. Is this justified or risky? The answer lies in Snowflake's strategic balance of innovation and execution, making it a speculative play for 🚀 growth-seeking investors. Before diving in, consider how this aligns with your risk tolerance and portfolio goals. Snowflake isn't just about immediate gains; it embodies future-forward thinking. 🔥 Curious about how this tech giant might fit into your strategy? Click for more insights on what sets Snowflake apart and why there's a buzz around its AI potential! 💡 #InvestmentOpportunities #AIRevolution #SnowflakeStock 📊

Snowflake Shares Drop 14% Amid Decelerating Product Revenue Growth Snowflake's stock took a significant hit, closing down over 14% after releasing its fiscal Q2 2025 earnings. While the data cloud analytics company exceeded Wall Street's revenue expectations, reporting $869 million versus the anticipated $851 million, concerns arose from the slowing growth in product revenue. The company posted $829.3 million in product revenue, a 30% year-over-year increase, but down from the 34% growth seen in the previous quarter. The net loss also widened to $317 million, or 95 cents per share, compared to a $227 million loss a year earlier. Morgan Stanley analysts noted that while the results were solid, the smaller product revenue beat and slowing growth may leave investors cautious. Snowflake's potential in generative AI could be a future growth driver, but for now, its core data warehousing business remains the focus. Despite a 2% product revenue beat in Q2, down from 5% in Q1, the deceleration to 29.5% YoY has sparked enough doubt to keep shares under pressure. Barclays analysts commented that Snowflake’s results aren’t likely to be a major catalyst, but they noted that the feared impact of a cyberattack and CrowdStrike outage didn’t materialize. Despite the slowdown, they viewed the 30% product growth and raised guidance as respectable given the current market conditions. #Snowflake #Earnings #ProductRevenue #StockMarket #CloudComputing #AI #Investing #Finance

Ubineer Corp. #AI predicted Snowflake 's next quarter revenue guidance with ~37 BPS ( or 0.37% ) accuracy!!! #TLDR 🎯: We were $3M off on a $810M Revenue guidance : - Snowflake's next quarter Product Upper #Guidance : $810 million - Ubineer Corp. #AI Upper guide Prediction: $813 million Can AI Predict Management Guidance? Yes!!! A common question I receive on LinkedIn from #portfoliomanagers or #chiefinvestmentofficers is whether our #AI can predict management guidance metrics and KPIs. The answer is yes! Ubineer Corp. excels in this area, though we typically refrain from publicly sharing these predictions. For example, Snowflake reported earnings right before NVIDIA today. And for both companies we were able to predict guidance Key Performance Indicators (KPIs) with remarkable sub-1% accuracy. Have a company you want us to tackle? Ubineer Corp.'s #AI can be a powerful tool, send me a DM if you want us to have a crack at predicting your favorite investment's KPIs, don't forget to like and repost... it spreads the 💜 . #AI #investing #SNOW #productRevenue #earnings #financialmodeling #stockmarket #AIpredictions #LinkedIn

Snowflake Q2 Earnings Report: Mixed Signals 🔢 Snowflake (NYSE: SNOW) has released its Q2 earnings: EPS: $0.19 (beating $0.16 estimate) Revenue: $868.82M (vs $851.58M expected) Product revenue: $829.3M (30% YoY growth) Net revenue retention rate: 127% Customers with >$1M trailing 12-month product revenue: 510 Forbes Global 2000 customers: 736 Remaining performance obligations: $5.2B (48% YoY growth) Additional News: Full-year product revenue forecast raised to $3.36B from $3.30B Authorized additional $2.5B share buyback through March 2027 Challenges: GAAP operating loss of $355.3M (41% of revenue) Projected slowdown in product revenue growth to 22% for Q3 FY2025 Market Reaction: Stock down in after-hours trading Despite beating estimates, the significant operating loss and projected growth slowdown appear to be weighing on investor sentiment. #Snowflake #EarningsReport #Tech #Stocks #Cloud #Computing #FinancialResults #Earnings #Economy

Last week, Snowflake revealed that CEO Frank Slootman will be retiring, passing the helm to former Google ad chief Sridhar Ramaswamy. This transition comes at a pivotal moment for Snowflake, which saw its shares dip 24% in extended trading following the news. Frank Slootman, who has been instrumental in Snowflake's monumental growth and successful IPO—the largest software IPO ever—will continue to shape the company's future as chairman of the board. Slootman's leadership took Snowflake public in 2020, marking a historic debut that more than doubled its stock value. Stepping into the CEO role, Sridhar Ramaswamy brings a wealth of experience from his 15 years at Google, where he led the ads and commerce business. His venture into creating Neeva, a consumer search engine, and its subsequent acquisition by Snowflake for $185 million, demonstrates his forward-thinking approach and expertise in technology and business scalability. Snowflake's fourth-quarter financials show a robust 32% year-over-year sales growth, reaching $774.7 million, with product revenue up 33%. Despite the operating losses, the strategic direction under Ramaswamy's leadership is anticipated to leverage opportunities in AI and machine learning, setting Snowflake on a path of sustained growth and innovation. For Snowflake customers and stakeholders, this leadership change signals a promising future. Ramaswamy's vision and Slootman's ongoing influence as chairman are expected to steer Snowflake through its next growth phase, particularly in expanding its AI and machine learning capabilities. While the immediate market reaction reflects uncertainty, the underlying strength of Snowflake's business model, its continued revenue growth, and strategic acquisitions speak to a resilient and evolving company. #Snowflake #LeadershipTransition #CloudComputing #AI #MachineLearning #Innovation

When Brad Floering joined Snowflake in 2017 to build out their FP&A function, he found a big problem: Forecasts were off by 20%+ every quarter. He quickly dug in and identified 3 reasons why: 1️⃣ Seat-based forecasting models were linear and ignored exponential growth in usage. 2️⃣ Predicting usage for new customers with no historical data was nearly impossible.  3️⃣ Most of Snowflake’s revenue came from those unpredictable new customers. Curious how he cracked the code on forecasting and put the company back on the path to IPO? Learn more at the link in the comments.

Snowflake built a game-changing data cloud platform from the ground up that others are still trying to copy. Now Snowflake is driving insane business-centric AI innovation velocity, built upon the original foundation. This is exactly the path organizations should be following - solidify the data foundation on Snowflake, and then commence with the AI strategy. Snowflake partners are building & delivering exceptional value. This ecosystem is unstoppable. DAS42 Snowflake

3 Red Flags for Snowflake's Future by newsfeedback@fool.com (Leo Sun) via The Motley Fool ([Global] oracle cloud) URL: https://ift.tt/PpbIzUt It's been a tough four years for Snowflake (NYSE: SNOW). The cloud-based data warehousing company went public at $120 per share on Sept. 16, 2020, more than doubled on its first trade to $245, and touched a record high of $401.89 on Nov. 16, 2021. At the time, the bulls were impressed by its triple-digit percentage growth rates and investments in its IPO from Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) and Salesforce (NYSE: CRM). The buying frenzy in growth and meme stocks amplified its share price gains and caused many investors to overlook its soaring valuation. Image source: Getty Images. But as of this writing, Snowflake trades at about $127. It has nearly taken a round trip back to its IPO price as its growth cooled off and rising interest rates compressed its valuations. Snowflake's product revenue, which accounts for most of its top line, soared 106% in its fiscal 2022 (which ended in January 2022) and another 70% in fiscal 2023, but grew by just 38% in its fiscal 2024. Management expects that deceleration to continue with just 24% growth in fiscal 2025. Snowflake mainly attributed the slowdown to macroeconomic headwinds, but its persistent losses and the abrupt retirement of its CEO Frank Slootman earlier this year prevented the bulls from coming back. I recently argued that investors might be getting too bearish on Snowflake -- but three red flags could hold its stock back for the foreseeable future. 1. Berkshire Hathaway has given up Salesforce gradually sold all of its shares of Snowflake throughout 2021 and 2022, but during that period, Berkshire Hathaway held on to all 6.13 million of the shares it picked up in the IPO. That only accounted for about 0.2% of the conglomerate's massive investment portfolio, but the bulls believed that its faith in the company indicated that it was still a worthwhile long-term investment. After all, Buffett rarely invests in tech stocks -- and previously, he only invested in blue chip tech companies like Apple, HP, IBM, and Oracle. That's why Berkshire's investment in Snowflake, a hypergrowth cloud stock without any GAAP (generally accepted accounting principles) profits, attracted so much attention. But in the second quarter of 2024, Berkshire Hathaway liquidated its entire stake in Snowflake. It still likely reaped a profit since Snowflake's stock traded at an average price of $147.69 during the quarter, but that would have been a disappointing result. That sale wasn't too surprising. Berkshire Hathaway has been selling a lot of stocks -- including half its stake in Apple and all of its HP shares -- to raise more cash over the past year. Buffett's conglomerate ended its latest quarter with a record $277 billion in cash and equivalents on its books -- so it might be keeping some powder dry for a potential ma...

The most interesting part of this earnings release was the earnings call. Very detailed responses by Sridhar to all the analyst questions. Definitely worth a listen, especially the part about applying AI to data pipelines; and also about Iceberg storage capabilities - https://lnkd.in/eqqkfiER