The Explosion in AI Drives Snow Higher!

Hello everyone! Today i want to share some technical analysis with you!

1.

I’ve been asked if it’s too late to invest in $Snowflake(SNOW)$ , and my answer is no -- based on 2025 peer valuations, Snowflake should trade at 👇

• $415 at $Palantir Technologies Inc.(PLTR)$ ’s valuation

• $181 at $Datadog(DDOG)$ ’s valuation

• $196 at $Confluent, Inc.(CFLT)$ ’s valuation

• $228 at $MongoDB Inc.(MDB)$ ’s valuation

Median target is $212

2.

The explosion of AI has turned data into the lifeblood of modern business. Companies need not only vast amounts of data but also the ability to process it faster than ever before -- $Snowflake(SNOW)$ earnings proved how they're built to meet this demand 👇

A Strong Q3 Backdrop

The lingering concern around storage revenue loss from Iceberg Tables? It’s now a non-issue. Snowflake’s new products have effectively offset this potential headwind, while data engineering workloads -- now surpassing a $200M run rate --have bolstered revenue streams. The result? Product revenue soared to $900M, up 29% YoY, beating consensus by 6%. Guidance for Q4 also came in hot -- a 23% YoY increase in product revenue, well above Wall Street’s 21% expectation.

Emerging Product Cycles Driving Growth

Snowflake’s innovation engine is humming. Iceberg Tables, initially feared as a drag on storage revenues, have proven immaterial as a headwind. In fact, the interoperability they enable is driving query volume and boosting product revenue. With over 500 customers already leveraging Iceberg -- it’s evolving into a mid- to long-term growth lever.

Then there’s Snowpark. Still contributing just 3% of revenue, this product is laying the groundwork for something much bigger. Expect its impact to grow significantly next year. Meanwhile, Cortex AI continues to carve out its space, enabling businesses to unlock the potential of their data. The recent partnership with $Amazon.com(AMZN)$ Anthropic adds even more firepower -- bringing advanced AI models directly into Snowflake’s ecosystem.

A Stabilized Core

Stabilization is the name of the game. After 10 straight quarters of declining net retention rates, Snowflake finally steadied the ship, holding at 127%. This isn’t just a blip -- it’s a signal that the core business is as solid as ever.

Customer growth paints a similarly optimistic picture. Snowflake added 369 net new customers, including 18 from the Global 2000, bringing the total to 754. High-value accounts are also expanding, with customers spending over $1M annually rising by 33 this quarter.

Long-Term Opportunity

The bigger picture? Snowflake is still in the early innings. With just 1% of the $350B TAM for cloud data platforms, the growth runway is massive. Large enterprise deals -- three of which exceeded $50M in annual contract value this quarter -- underscore the sustained appetite for Snowflake’s solutions.

As AI reshapes industries, data needs will only grow. Snowflake, with its usage-based pricing model, innovative product suite, and strong customer adoption, is perfectly positioned to capitalize. Whether through legacy migrations, emerging product cycles, or enterprise expansion -- the company is building a foundation for long-term success.

Final Thoughts

Snowflake’s Q3 performance wasn’t just a beat -- it was a statement. It proved that headwinds like Iceberg are surmountable, competition from Databricks isn’t slowing growth, and demand for data cloud solutions remains strong. This will be a $300 by 2026.

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