Snowflake Q4 Preview: Analyst Sees 'Outsized Benefit' From AI Growth, Cloud-Native Data Platform 'Disrupting A Massive Market'
Portfolio Pulse from Surbhi Jain
Snowflake Inc (SNOW) is set to report its Q4 earnings with expectations of 18 cents EPS and $759.10 million in revenues. Analyst Mike Cikos of Needham has a Buy rating on SNOW, with a price target raised to $265, citing an 'outsized benefit' from AI growth and cloud migrations. Snowflake's cloud-native data platform is disrupting the market, with a 21% exposure to Azure, indicating a strategic advantage. The company's focus on unstructured data and the Applica acquisition further positions it against competitors like Databricks.
February 27, 2024 | 5:40 pm
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POSITIVE IMPACT
Microsoft's expansion in AI and its strategic relationship with Snowflake, where Snowflake has a 21% exposure to Azure, positions MSFT to potentially benefit from Snowflake's growth.
Snowflake's significant exposure to Azure and the mention of Microsoft's AI expansion suggest a symbiotic relationship that could benefit Microsoft. As Snowflake grows and leverages Azure more extensively, Microsoft could see indirect benefits through increased cloud services usage and alignment with AI initiatives.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Snowflake's Q4 earnings are anticipated with optimism, backed by strong analyst support and strategic growth initiatives. The focus on AI, cloud migrations, and the Applica acquisition are key factors.
The positive outlook from analysts, especially the raised price target by Needham, indicates strong confidence in Snowflake's growth trajectory. The company's strategic focus on AI and cloud migrations, along with its expansion into unstructured data and the Applica acquisition, are expected to drive its performance positively in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100