Snowflake Gains 6% in a Month: Should You Buy, Sell, or Hold?

Earnings
โดย Zacks Investment Research·Read original
Summary · why it matters

Snowflake shares have risen 6.5% in a month, outperforming the broader Zacks Computer & Technology sector's decline of 4.4% and the Internet Software industry's decline of 1.6%. The outperformance is attributed to strong adoption and increasing usage of its platform, reflected by a net revenue retention rate of 126% in the first quarter of fiscal 2027. Snowflake reported 13,912 total customers, adding 616 net new customers, up 38% year over year, including 13 new Forbes Global 2000 customers. The company now has 779 customers spending more than $1 million annually, up 29% year over year, and 64 customers spending more than $10 million annually. Snowflake is benefiting from strategic expansion of its AI reach through deepening partnerships and innovative product launches, with more than 13,600 accounts now leveraging its AI capabilities. In June 2026, Sanofi launched Concierge for Field, an AI agent created with Snowflake Cortex AI, to help sales representatives prepare for physician visits in seconds. The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $1.47 billion, indicating 28.39% year-over-year growth, while the consensus earnings estimate is 45 cents per share, suggesting a 28.57% increase. However, Snowflake faces stiff competition from major players like Oracle and Amazon, which are also expanding their AI footprint, and suffers from variability of consumption as customers optimize spend and AI products carry lower gross margins. Snowflake shares are currently overvalued, trading at a forward 12-month Price/Sales of 13.48X compared with the Internet Software industry's 3.82X, and carry a Zacks Rank of 3, suggesting investors may want to wait for a more favorable entry point.

Impact on stocks 4

Cloud & Digital Infrastructure▼ · 2 stocks
Snowflake Inc.
SNOW
± Mixedrelevance

Article discusses Snowflake's strong adoption and revenue growth but also notes competition, consumption variability, and overvaluation; mixed outlook.

Oracle Corporation
ORCL
▼ NegativeCompetitionrelevance

Mentioned as a major competitor expanding AI footprint, posing competitive threat to Snowflake.

Artificial Intelligence▼ · 1 stocks
Amazon.com Inc
AMZN
▼ NegativeCompetitionrelevance

Mentioned as a major competitor expanding AI footprint, posing competitive threat to Snowflake.

Health Care▲ · 1 stocks

Theme Impact 2

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