Does Snowflake stock warrant an investment after analyst day?

Snowflake Inc (NYSE: SNOW) is in the red a day after its analyst day that did not focus much on the financial outlook. 

Snowflake stock could climb back to $200

But analysts at the Bank of America find it “understandable” for the cloud computing company to not expand on guidance given “near-term uncertainty associated with business transitioning to incorporate critical AI features”. 

Brad Sill and Carly Liu continue to see upside in Snowflake stock to $200 or over 50% from here on “ramping usage of new products, expected to contribute to FY25 – FY26 growth”. 

They expect Cortex AI, in particular, to begin adding to revenue at some point this year while Snowflake Container Services and Streamlit, the analysts forecast, will boost bottom line from 2025. 

The bullish call arrives only days after $SNOW reported its financial results for the first quarter that handily topped Street estimates. The New York listed firm, however, failed to impress with its guidance for the current quarter. 

Snowflake shares are currently down well over 40% versus their year-to-date high in February. 

Watch here: https://www.youtube.com/embed/0wJqgHSfYi0?feature=oembed

Snowflake announces new AI products

Snowflake Inc is trading down this morning even though it announced new AI products at its Data Cloud Summit 2024 on Tuesday. 

These include Snowflake Notebooks and Snowflake Trail. The $44 billion giant integrated AI chat capabilities to Cortex AI as well. According to Baris Gultekin – head of AI at $SNOW:

Snowflake is at epicentre of enterprise AI, putting easy, efficient and trusted AI in the hands of every user so they can solve their most complex business challenges, without compromising on security or governance.

The NYSE listed firm guided for $2.6 billion in product revenue for the full year in May. Analysts, in comparison, were at a slightly higher $2.7 billion. 

Note that BofA is not the only firm that’s keeping super bullish on Snowflake stock. Analysts at Oppenheimer continue to see upside in it to $220 as well. 

Ittai Kidron agreed in a research note today that product announcements at the summit were “not groundbreaking” but said “acceleration innovation and dedicated focus towards AI “will help expand margins in FY26/27. “It also gives us confidence that customers will be incentivised to build apps on Snowflake”, he added.

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