SnowflakeNYSE: SNOW

Snowflake made it onto Goldman Sachs' July "Conviction List." Its analyst believes Snowflake's new CEO can turn around the stock's fortunes.

Snowflake is seeing selling pressure in FY 2024 despite the cloud platform seeing strong top line growth and a 1 PP revenue acceleration in FQ1'25. The company's net losses are a concern, but free cash flow remains strong, with a 40% margin in the last quarter. Relatively new and evolving product offers like Snowflake Cortex AI make the Snowflake platform more attractive to enterprise customers.

Data analytics firm Snowflake (NYSE: SNOW ) is on a long slide lower. Although it impressively beat analyst expectations by a wide margin, guidance indicated a coming slowdown and profits are still nowhere in sight.

Snowflake's revenue pipeline is growing thanks to catalysts such as AI. Following this year's steep pullback, investors can buy the stock at a much cheaper valuation.

Snowflake's excessive valuation and slowing growth have stunted shares for several years. AI potential could bring back accelerating revenue growth.

Artificial intelligence (AI) is driving incredible gains in stocks like Nvidia, Microsoft, and Amazon. Cloud computing company Snowflake recently launched several AI products of its own, but those moves haven't helped its stock price.

Snowflake beat expectations on both the top and bottom-line this quarter, as its core business remains very strong. The company raised its product revenue guidance for FY2025 and lowered margin guidance as a result of its investment into AI. The new CEO, Sridhar Ramaswamy, has prioritized customer engagement, execution, and product innovation, since taking over one quarter ago.

For a long time Snowflake (NYSE: SNOW ), branded itself as a data cloud specialist. That's still true, but a new leader is pushing Snowflake in a different direction.

Snowflake stock is down 30% this year already.