Snowflake Q3 Preview: Cloud Optimization Headwinds In Focus, Earnings Volatility Expected
Portfolio Pulse from Surbhi Jain
Snowflake Inc (NYSE:SNOW) is set to report Q3 earnings with an expected EPS of 16 cents and revenue of $713.42 million. Analysts are focusing on cloud optimization challenges and potential AI benefits from new products like Snowflake Cortex. The stock is trading at a high P/E ratio of 246, posing downside risks if growth doesn't stabilize. Analyst ratings are generally positive, with a consensus price target of $183.27, while Morgan Stanley has a higher target of $215. Shares were up 0.73% at $171.55 recently.
November 29, 2023 | 1:31 pm
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NEUTRAL IMPACT
Disney is identified as a key customer of Snowflake, indicating Disney's utilization of advanced cloud data platforms.
Disney's mention as a Snowflake customer points to its use of sophisticated data warehousing, which could be seen as a strategic tech initiative. The direct impact on Disney's stock is expected to be minor in the short term.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 20
NEUTRAL IMPACT
Honeywell is noted as a significant customer of Snowflake, potentially indicating Honeywell's investment in robust data analysis capabilities.
Honeywell's mention as a Snowflake customer suggests its engagement with high-level data warehousing services, which may be viewed positively. The immediate impact on Honeywell's stock is likely limited.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 20
NEUTRAL IMPACT
Mastercard is mentioned as a key customer of Snowflake, which may reflect positively on Mastercard's commitment to leveraging advanced cloud-based data solutions.
Mastercard's mention as a customer of Snowflake highlights its use of advanced data warehousing solutions, which could be seen as a positive indicator of its tech-forward approach. However, the direct impact on Mastercard's stock is likely minimal in the short term.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 20
NEUTRAL IMPACT
Snowflake's Q3 earnings are anticipated with a focus on cloud optimization and AI product impacts. Analysts maintain a positive outlook with a consensus Buy rating and a price target of $183.27, while Morgan Stanley targets $215. The high P/E ratio suggests volatility and risk.
Snowflake's earnings report is critical for investors, with a focus on how the company is managing cloud optimization and leveraging AI. The high P/E ratio indicates potential volatility, but analyst ratings suggest confidence in the company's growth prospects. The score is neutral due to the balance between high expectations and the risks associated with the high valuation.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100