Snowflake Inc (NYSE:SNOW) experienced a 3.52% increase in pre-market trading on Monday, according to Benzinga Pro.
What Happened: This rise followed an upgrade from Neutral to Outperform by Dan Ives' Wedbush, with a revised price target of $190. Wedbush analysts expressed heightened optimism about the software sector's role in the evolving AI Revolution, projecting growth into 2025.
Wedbush's analysis suggests that Snowflake is well-positioned to capitalize on the anticipated advancements in artificial intelligence, which is expected to drive significant growth in the software industry over the coming years.
— Dan Ives (@DivesTech) November 24, 2024
Now its time for the broader software space to get in on the AI Party as we believe the use cases are exploding, enterprise consumption phase is ahead of us in 2025, launch of LLM models across the board, and the true adoption of generative AI. SNOW $190 and ESTC $135
Why It Matters: The recent upgrades by Wedbush come on the heels of Snowflake's impressive third-quarter financial results, which exceeded analyst expectations. Snowflake reported revenue of $942.09 million, surpassing the estimated $896.99 million. The company's adjusted earnings were 20 cents per share, beating the forecasted 15 cents per share.
Snowflake's total revenue increased by 28% year-over-year, with product revenue rising by 29%. The net revenue retention rate stood at 127% for the quarter. Additionally, the remaining performance obligations reached $5.7 billion, marking a 55% year-over-year growth.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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