Snowflake's stock has risen with expanding clientele and positive revenue growth, but faces valuation concerns

From Nasdaq: 2025-03-25 12:47:00

Snowflake shares (SNOW) have risen 5.7% year to date, with 11,159 customers as of Jan. 31, 2025, contributing to fiscal 2025 revenues of $3.6 billion, up 29% from fiscal 2024. SNOW added over 400 product capabilities in fiscal 2025, with a net revenue retention rate of 126% and 580 customers generating over $1 million in revenue.

Despite the positive performance, SNOW shares are overvalued with a Value Score of F and a price/sales ratio of 11.69X, higher than the industry average of 5.08X. Snowflake faces competition from Databricks and rising costs due to AI investments, leading to a bearish trend in the stock price.

Snowflake is benefiting from its strong partner base, innovative portfolio, and strategic acquisitions, but faces competitive pressures and rising costs. The company has provided positive guidance for Q1 and FY26, with product revenues expected to grow by 21-22% in Q1 and 30% in FY26. SNOW currently holds a Zacks Rank #3 (Hold) recommendation.



Read more at Nasdaq: Can SNOW’s Expanding Clientele Push the Stock Higher in 2025?