SNOW - Snowflake's Q1 2025 Results Highlight Effectiveness Of AI Accelerant (Upgrade)
2024-05-23 10:53:58 ET
Summary
- Snowflake Inc.'s Q1 2025 revenue outperformance continues to highlight improving consumption trends, reinforced by early observations of strong uptake for its upcoming AI/ML-focused product pipeline.
- The raised FY 2025 revenue guidance remains well-positioned for a further upside surprise, with the upcoming GA of Snowflake's AI/ML-focused product pipeline being additive to its forward growth outlook.
- We believe Snowflake's valuation correction observed earlier this year has been sufficiently de-risked for execution risks ahead pertaining to its AI roadmap.
Snowflake Inc. ( SNOW ) stock continues to progress on a corrected valuation trajectory following mixed 1Q25 results. Recall that the stock has suffered from multiple compression after management retracted, earlier this year, Snowflake’s implied 30%+ multi-year growth outlook. Much of the tempered fundamental prospect was attributable to a slower-than-expected consumption backdrop for FY 2025 due to the combination of ongoing industry and company-specific headwinds....
Snowflake's Q1 2025 Results Highlight Effectiveness Of AI Accelerant (Upgrade)