Important note

This AI stock analysis for Snowflake is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Snowflake - AI Stock Analysis

Analysis generated September 21, 2024

Snowflake Inc. is a leading cloud computing-based data warehousing company. The enterprise focuses on providing data warehouse, business intelligence, and data sharing solutions designed to allow seamless data storage and analytics. Snowflake's unique architecture separates storage and compute, enabling users to scale and pay for each independently. The company has rapidly grown to become a formidable player in the data warehousing market, boasting a diverse clientele across various sectors.

Fundamental Analysis

Snowflake’s revenue for the last quarter was $871M. This is an increase of 4.77% compared to the previous quarter, indicating positive sequential growth. More notably, when compared to the same quarter last year, there is a significant increase of 28.59%, highlighting strong year-over-year growth. The robust annual growth showcases the company's successful strategy in scaling its business operations and expanding its customer base.

The net income for the last quarter stood at $317M, marking a slight sequential increase of 0.03%. However, compared to the same quarter last year, net income has decreased by 39.68%. This substantial year-over-year decline may raise concerns regarding the company's profitability and cost management.

Snowflake’s EBITDA for the last quarter was $331M. This figure represents a decrease of 9.59% compared to the previous quarter. Compared to the same quarter last year, the EBITDA has declined by 25.24%, which further underlines potential underlying operational or cost inefficiencies. These drops are an area of concern and suggest that the company should focus on improving its cost structure and operational efficiency.

Additionally, recent insider selling could indicate a lack of confidence among senior management about the company's short-term prospects, which could serve as a bearish signal for potential investors.

Technical Analysis

Snowflake’s current stock price is $110.27, an 18.35% decrease compared to a month ago. This significant short-term decline might be concerning for investors looking for quick returns. Over a longer period, comparing to a year ago, the stock price has fallen by 26.34%, potentially indicating long-term concerns about the company's growth trajectory.

The current trend is bearish, and the recent SMA10 is $112.38 lower than the previous SMA10 of $112.55, indicating a downward trend. This further reinforces the negative sentiment and is a critical indicator for traders focusing on technical signals.

The RSI (Relative Strength Index) stands at 69, which is within neutral territory, suggesting that despite the bearish trend, the stock is neither oversold nor overbought.

Alternative Data Analysis

Snowflake has 472 open positions listed on popular job boards, a metric that has remained stable over the past few months. This stability in job postings suggests a steady outlook for the company in terms of workforce expansion and business growth. Employee sentiment about the company remains neutral, indicating neither overwhelming positivity nor negativity internally.

In terms of customer acquisition, Snowflake’s web traffic holds steady at an estimated 4.2M visitors, showing no significant increase or decrease. This consistency suggests a stable customer interest. Additionally, their Instagram following has increased by 12% over the past couple of months, showing growing interest and engagement from the public.

Snowflake’s Twitter following stands at 55,000, with stable follower growth. While there haven't been significant increases, the consistency in engagement serves as a neutral indicator. According to AltIndex’s AI score, Snowflake has an AI score of 46, which classifies it as a hold signal, suggesting that the stock may perform neither exceptionally well nor poorly in the short term.

Conclusion and Recommendation

Given the above analysis, Snowflake presents a mixed investment case. On the positive side, the company has shown impressive revenue growth both sequentially and year-over-year. However, the significant declines in net income and EBITDA, coupled with the bearish technical trends and insider selling, are concerning signals. The stable alternative data metrics, including job postings and web traffic, suggest that the company is maintaining its current position without aggressive expansion or contraction.

Therefore, the investment recommendation for Snowflake is to hold. While the promising long-term revenue growth shows potential, the concerns around profitability and negative technical indicators suggest caution. Investors may want to watch for improvements in profitability and operational efficiency before considering additional investment.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.