Snowflake's recent drop in stock price was anticipated, indicating that the AI bubble may be bursting and its rapid growth is not sustainable. Even though there are claims of strong revenue growth and a growing backlog for FY2025, the company's profits and financial stability are showing mixed results. Additionally, the sales process may take longer as competition increases among various companies in the data analytics sector.
Sridhar Ramaswamy, the CEO of Snowflake, talks about the company's plans and goals for AI, emphasizing that each project should provide value. He appears on "Bloomberg Technology" with Caroline Hyde.
Shares of Snowflake (NYSE:SNOW), a data warehouse-as-a-service company, dropped by 7.1% in the morning after the markets fell, continuing a trend from the previous week due to worries about the ongoing trade war. On March 9, 2025, President Trump addressed concerns about a potential recession on FOX News, describing the market difficulties as "a period of transition," but this did little to reassure investors. The decline was especially noticeable in the tech sector, with the Nasdaq experiencing significant losses.
For the last two years, artificial intelligence (AI) has been a major topic in the financial markets. However, AI-focused stocks have not performed very well since the beginning of this year.
Warren Buffett is the CEO of Berkshire Hathaway, a company that manages a portfolio of stocks worth $287 billion, along with several private businesses. His well-known straightforward investment approach has resulted in impressive returns over the past 59 years.
TOKYO--(BUSINESS WIRE)--JPX Market Innovation & Research, Inc. (“JPXI”), a top provider of financial market data in Japan, has announced that J-Quants Pro datasets will be available on Snowflake's leading data cloud platform starting in March 2025. This marks the first of JPX's diverse data services to be shared through Snowflake as part of their important partnership. The J-Quants Pro Data Service provides corporate users with comprehensive data.
On February 27, shares of Snowflake (SNOW 2.14%) rose by 4.5% after the company announced its fourth-quarter results for fiscal 2025, which ended on January 31. This increase in stock price was justified, as the results significantly exceeded Wall Street's predictions.
Snowflake's stock saw a huge increase right after its IPO in September 2020. The cloud data warehousing firm started trading at $120, quickly rising to $245 on its first day, and later reached a peak of $401.89 in November 2021.
Snowflake announced impressive earnings for Q4'25, achieving an adjusted EPS of $0.30 and $987 million in revenue, exceeding forecasts and demonstrating a 28% year-over-year growth in product revenue. Although there was a small drop in the net retention rate, the company's free cash flow increased by 28% compared to last year, resulting in a strong 42% free cash flow margin. For the fiscal year 2026, Snowflake anticipates $4.28 billion in product revenues, with a 24% year-over-year growth rate and a solid 75% gross margin.
Snowflake Inc. (NYSE:SNOW) participated in the Citizens JMP Technology Conference Call on March 4, 2025, at 1:30 PM ET. The Chief Financial Officer, Michael Scarpelli, was present for the call. An unidentified analyst expressed excitement about having Snowflake and Michael Scarpelli join the discussion and asked about the year of the company's IPO, to which Scarpelli responded that it was in September 2020.