Jim Cramer, the famous investor, continues to see further upside for Snowflake Inc. (NYSE:SNOW) because it has “all that we really want in a company.”
Snowflake’s stock rose 10% on Thursday, after the cloud company reported better than expected financial results for its fourth-quarter.
SNOW has risen by 70% since its low of early September.
Mad Money’s host still recommends investing as it is growing at a faster pace than Salesforce Inc. (NYSE: CRM).
Snowflake’s revenues increased by 27% year-over-year in the recently concluded quarter, compared to only 7.6% for Salesforce. This makes the former much “simpler” at current levels.
Why does Cramer prefer Snowflake to Salesforce?
Cramer has great confidence in Sridhar Ramaswamy’s leadership.
Even a Nvidia “has many moving parts”, given that the Trump administration is reportedly considering tightening up regulations on exports of sophisticated chips to China. There’s also the issue of new tariffs.
Mad Money host says that with Snowflake stock none of this is relevant. This makes it a much easier investment than Salesforce and Nvidia.
Jim Cramer also likes SNOW because it has an extensive list of clients. The New York-listed firm ended its most recent quarter with 11,159 clients, up from 10,618 customers a year earlier.
SNOW is expanding its presence in the AI space
Snowflake stock is also worth buying because of its commitment to expanding in artificial intelligence.
The data analytics company has launched new AI tools, and has intensified its partnerships with Microsoft Azure OpenAI.
SNOW announced the acquisition of Datavolo as part of its AI push last year.
Sridhar Ramaswamy, the chief executive at Snowflake, spoke with CNBC and even called his company “the most important enterprise data and artificial intelligence company on the planet today.”
The tech stock currently does not pay a dividend in order to attract income investors.
How high can Snowflake stock soar in 2025?
Goldman Sachs is more confident about Snowflake’s ability to generate incremental revenue in the second half of 2025.
Analyst Kash Rangean maintained his “buy’ rating on SNOW, with a significant further increase in its price to $220 on the Thursday. His price target represents a 20% increase from current levels.
Rangan is bullish about Snowflake’s stock, as he believes it will “become a core component in the development of AI applications. This is evidenced by the 4000+ accounts that are using Snowflake AI/ML or Cortex AI’s early momentum.”
Snowflake has forecast product revenues of $4.28 billion this year, which is well above the $4.21 billion analysts had predicted. The company’s current quarter forecast, however, did not meet expectations.
This post Salesforce vs Snowflake Stock: One of them has everything ‘you want from a company’ could be modified as new information becomes available.
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