his Thursday Snowflake’s sales grew by 28% after data analytics provided information regarding the growing trend seen in the cloud-based data storage and analytics.
The company’s growth has fallen by 35% this year, following a track of growth since it went public in 2020. Even more so, their value is set to grow by over $12 billion on a market cap of $43.3 billion.
After a slowdown in cloud computing has met a slowdown, the growth is back on. Even more so, investors are following Snowflake's initiatives regarding artificial intelligence under their new CEO.
Snowflake was founded in 2012 and the company specializes in data analytics and management software. The cloud runs on platforms such as Amazon, Microsoft, and Alphabet’s Google. Yet, more lately, the company has been growing as a cloud data management platform.
So, whether or not you should invest in Snowflake stock depends on your personal strategy. For the third quarter earnings analysts projected a 22% growth, meaning $899 million.
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“We expect SNOW to deliver solid Q3 results and nudge higher fiscal year estimates," said Evercore ISI analyst Kirk Materne in a report. "While the stock remains in 'show me' mode, we believe that even a slight bump to the Q4 guide could be enough to build on some of the recent gains, with the key to unlocking more upside being a stabilization in revenue growth coupled with operating margin expansion."
Yet, Snowflake's growth was “Product revenue of $900.3 million in the third quarter, representing 29% year-over-year growth” as they wrote in their report.
Sridhar Ramaswamy, CEO of Snowflake said“Snowflake delivered a strong third quarter, with product revenue of $900 million, up 29% year-over-year, and remaining performance obligations of $5.7 billion, with year-over-year growth accelerating to 55%,” also adding “Our obsessive drive to produce product cohesion and ease of use has built Snowflake into the easiest and most cost-effective enterprise data platform. That is what’s leading us to win new logo after new logo, expand within our customer base, and displace our competition over and over again.”.
By
Eva Robinson
•
November 22, 2024 5:15 PM
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