Snowflake's shares experienced a 24% increase in premarket trading after the company reported adjusted earnings of 62 cents per share for its fiscal second quarter, surpassing the expected 45 cents. Revenue grew by 35% year-over-year to $1.55 billion, exceeding the consensus estimate of $1.5 billion.
Analysts from Morgan Stanley and Bank of America expressed confidence in Snowflake's growth trajectory, with Morgan Stanley's Sanjit Singh highlighting the strong monetization of AI driving consumption on the platform. Both analysts raised their price targets significantly, with Morgan Stanley increasing its target from $300 to $470 and Bank of America from $395 to $470.
The optimistic outlook is further supported by Snowflake's guidance for $1.59 billion in product revenue for the upcoming fiscal quarter, which also exceeds the FactSet consensus of $1.5 billion. Overall, 46 out of 52 analysts covering Snowflake have a buy or strong buy rating, reflecting strong market confidence in the company's performance and growth potential