SNOW: What's Going on after ER?
$Snowflake(SNOW)$ reports F2Q25 results tonight after the market close.
I expect the company to exceed our F2Q product revenue and non-GAAP EPS estimates of $809M and $0.16, which are at the high end of guidance.
While i am not expecting tonight's results to be a catalyzing print, i think the F2Q results should be fine such that i am comfortable owning the stock into the quarter. Upside catalysts going into the print include improving consumption trends, subsiding cloud optimization headwinds, and a strong product cycle that drives more workloads on the Snowflake platform.
Concerns include the recent data breach incident, customers moving to Iceberg tables that present near-term growth headwinds, and a new CFO tasked with navigating the existential threat from open table data formats.
So while i think the quarter is fine, i believe the new CEO must calm investor fears around looming longer-term challenges by showing progress on a couple of fronts. They include
1) driving continued high growth in the core data warehouse business,
2) accelerating customer adoption for building data apps on Snowflake, and
3) transforming the company to a broader AI data play for data scientists and engineers that build AI/ML solutions on its platform. We maintain our Buy in front of the quarter, though i am loiring our price target to $185
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- Mywonderland·08-22还砸LikeReport