Snowflake Inc. (NYSE:SNOW) rallied by more than 30 percent this morning, boosted by a strong third quarter. The company also raised its guidance for the entire year.
Kash Rangan, a Goldman Sachs Analyst is still convinced that you didn’t miss the boat with SNOW. It’s set to continue its gains in the future.
Rang believes that Snowflake’s stock is well-positioned to capitalize on the “generational shift” of data and analytics into the cloud.
Dividends are not paid on the shares of this Californian company.
Stocks of Snowflake could reach $220 by next year
Goldman Sachs reiterated its “buy rating” on Snowflake on Thursday. The $220 target price indicates that there is still 30% more upside potential.
Kash Rangan believes that SNOW will grow its revenue sustainably at an increased rate, thanks to “strong secular headwinds such as cloud adoption, AI/ML and secure data-sharing.”
The cloud provider’s shares are surging today, too. This is because the company announced plans for a team-up with Amazon-backed AI start up Anthropic.
Snowflake Cortex AI will be able to deliver Claude models in a multi-year partnership.
On the call, Sridhar RAMASWAMY – Snowflake Inc.’s chief executive – expressed his confidence that the company would be able to expand its relationship with the Federal Government.
The Snowflake Stock is set to have its best ever day on Thursday.
Snow is a AI game
Snowflake has raised their product revenue guidance today for the entire year to $3.43 Billion, which is about 29% higher than last year.
Comparatively, analysts had predicted $3.36 billion.
JPMorgan also raised its SNOW price target in response to the company’s positive guidance.
In its Thursday research note, the investment firm called Snowflake Stock an “exceptional name” among software firms due to “the alignment with secular trends such as data growth and digitization, rapid revenue growth, at scale and a strong, efficient business plan.”
Snowflake gives you access to the Artificial Intelligence market, which Statista predicts will continue growing at an annualized compound rate exceeding 28% until the year 2030.
Snowflake’s losses widened during Q3
Snowflake’s third quarter financial loss was $324 million, or 98 cents per share.
The data storage company lost only 65 cents per shares a year earlier.
Analysts also predicted a loss of 97 cents per share for Q3. Snowflake’s stock could experience a modest pullback once the frenzy of the earnings season subsides.
Investors should be confident in purchasing any possible dips that might occur in the next few weeks, based on the company’s prospects.
Snowflake’s analyst Ritesh A. recommended that you buy Snowflake stock before the release of earnings.
The post Snowflake Stock Jumps 33% On Thursday: Analysts See More Upside Potential may be updated as new developments unfold.
