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  • Snowflake (SNOW) Shares Jump In Pre-Hour Trading After Earnings Release

    Snowflake (SNOW) Shares Jump In Pre-Hour Trading After Earnings Release

    Snowflake Inc. (NYSE: SNOW) stock price is increasing significantly this morning after its earnings report was released. As of the most recent pre-market check, SNOW shares reached $157.15, up 21.71%.

    Impressive Third Quarter Performance

    With a 29% year-over-year increase in product sales to $900 million, Snowflake produced an exceptional third-quarter result. The business also met its remaining performance requirements, which came to $5.7 billion, a 55% increase over the prior year. The company’s capacity to sustain steady development via its dedication to product coherence and user-friendliness is demonstrated by its strong financial performance.

    Strategic Growth and Expansion of Customers

    Because of the company’s unwavering commitment to improving its data platform, Snowflake is currently the most affordable and user-friendly option available to businesses. Significant growth has been generated by this strategic strategy, which has increased its position in current accounts and drawn in new clients.

    According to the most recent report, Snowflake has 754 Forbes Global 2000 clients and 542 customers that generate over $1 million in trailing 12-month product sales, representing a 25% and 8% increase in year-over-year growth, respectively.

    Acquisition of Datavolo to Strengthen AI Capabilities

    In a move to further enhance its offerings, Snowflake announced the acquisition of Datavolo, a company specializing in accelerating the creation and management of multimodal data pipelines for enterprise AI.

    This acquisition will enable Snowflake to strengthen its position in the data lifecycle’s ‘bronze layer,’ offering data engineering teams a simplified way to integrate systems with Snowflake’s unified platform. The combined capabilities will unlock AI, machine learning, and analytics potential while ensuring scale, performance, and governance within the AI Data Cloud.

    Focus on Public Sector and Open Standards

    Snowflake’s acquisition of Datavolo also aligns with its goal to deepen its footprint in the public sector. The company plans to continue supporting the Apache NiFi project, ensuring full interoperability across various data environments. By doing so, Snowflake aims to enhance its platform’s security and governance, offering users a trusted foundation for AI-driven innovation.

    Snowflake (SNOW) shares jumped in pre-market trading, fueled by strong earnings performance and investor optimism following the latest report.

  • Top Cloud Stocks To Buy Before 2023 Ends and Make Profits

    Top Cloud Stocks To Buy Before 2023 Ends and Make Profits

    Cloud computing has revolutionized the way businesses operate in the digital age. With the growing dependence on cloud services, the demand for cloud technology and related services continues to soar. As a result, investing in cloud stocks has become an attractive option for investors seeking long-term growth opportunities.

    In this comprehensive guide, we will explore the concept of cloud computing stocks, delve into the cloud computing space, and provide insights into why investing in cloud computing stocks can be a lucrative choice.

    Furthermore, we will discuss strategies for maximizing profits in cloud stock investments and provide tips on monitoring and reviewing investment performance.

    By the end, you will be equipped with the knowledge needed to navigate the dynamic world of cloud stocks and make informed investment decisions.

    What Are Cloud Stocks?

    Cloud stocks, also known as cloud computing stocks, represent shares of companies that operate within the cloud computing industry.

    These companies provide cloud-based services, infrastructure, software, or platforms, enabling businesses to store, manage, and process data on remote servers. So, what are cloud stocks?

    These are investment opportunities that allow individuals to participate in the growth of the cloud computing sector, which has experienced tremendous expansion in recent years.

    By investing in these stocks, individuals can benefit from the increasing adoption of cloud technology across various industries.

    Cloud Computing Space

    Cloud computing has revolutionized data storage, processing, and access. It delivers scalable, on-demand computing services over the Internet, offering flexibility, cost-effectiveness, and efficiency.

    It enables innovations like virtualization and serverless computing, empowering businesses to scale rapidly. Cloud computing also drives advancements in AI, big data analytics, and IoT, shaping the digital landscape.

    Business Models and Cloud Services

    The cloud computing industry has revolutionized the way businesses operate, offering a variety of models and services including:

    • Infrastructure as a Service (IaaS)

      IaaS providers offer virtualized computing resources, allowing businesses to access servers and storage on demand. This model provides scalability and flexibility without the need for physical infrastructure.

    • Platform as a Service (PaaS)

      PaaS providers, on the other hand, offer a platform for application development, testing, and deployment. This eliminates the need for businesses to manage the underlying infrastructure, focusing instead on creating innovative applications.

    • Software as a Service (SaaS)

      SaaS providers deliver software applications directly to end-users over the internet. This model offers convenience and accessibility, allowing users to access applications from any device with an internet connection.

      The cloud computing space provides businesses with a range of options to suit their specific needs and goals.

    Customer Relationship Management (CRM) Software Company

    Cloud-based services have revolutionized various industries, and Customer Relationship Management (CRM) software stands out as a prime example.

    Renowned CRM software providers like Salesforce and HubSpot offer innovative cloud-based solutions. These tools empower businesses to efficiently handle customer relationships, optimize sales procedures, and bolster marketing endeavors.

    By harnessing the power of the cloud, organizations can streamline operations and leverage advanced functionalities, leading to improved customer satisfaction and enhanced business growth.

    Cloud-based CRM software is transforming the way companies manage and interact with their customers, creating new opportunities for success.

    Major Cloud Companies In The Industry

    The cloud computing industry is a dynamic landscape, and three major players stand out: Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP).

    These giants have established their dominance in the public cloud sector, providing an extensive array of services.

    From storage solutions to high-performance computing and advanced database management, they cater to diverse business needs.

    Moreover, their focus on artificial intelligence and machine learning capabilities enables organizations to harness the power of cutting-edge technologies.

    As the demand for scalable and efficient cloud services continues to grow, these industry leaders pave the way for innovation and drive digital transformation across various sectors.

    Top Cloud Stocks To Before 2023 Ends

    Investing in top cloud companies stocks offers an opportunity to ride the wave of digital transformation. Cloud computing is revolutionizing industries, enabling scalability, cost-efficiency, and innovation.

    With the increasing demand for cloud services, investing in this sector can provide long-term growth potential and exposure to a technology-driven future. Seize the chance to invest in the future of business.

    The Trade Desk (TTD)

    The first stock on our list of cloud stocks is a programmatic ad-buying platform, The Trade Desk (TTD). The Trade Desk empowers buyers of advertising through its self-service, cloud-based platform.

    The company has already placed itself as number one in advertising campaign management, surpassing MediaMath and Google Ad Manager. It is also the third-largest demand-side platform by market share.

    While most ad-buying companies are struggling due to the downturn in the sector, The Trade Desk continues to race higher. It has continuously achieved a 95% customer retention rate for over seven consecutive years.

    Despite the gloomy situation in the ad market, the company came out with exceptional results in the latest earnings report.

    Sales grew 24% year-over-year and the balance sheet remained strong with $1.45 billion in cash plus short-term investments and $261 million of debt.

    Analysts are expecting revenue growth of 15.40% this year and 21% to 24% through 2025. Moreover, earnings are forecasted to double from 2023 to 2027.

    On top of this, the market opportunity is burgeoning for The Trade Desk. Tired of the dominant closed advertising ecosystems owned by the likes of Meta and Google, marketers are turning away from them.

    And the shift to advertising on connected-TV platforms is already driving tremendous growth for The Trade Desk. Therefore, this is not a cloud stock to be missed right now.

    With its strong profile and standing, The Trade Desk is well-positioned to make tremendous gains in the days to come.

    Snowflake Inc. (SNOW)

    Up next is a cloud-data warehousing company, Snowflake Inc., with the (SNOW). This cloud computing-based data cloud company offers data storage and analytics services in a game-changing way.

    Its signature product, Data Cloud, addresses one of the biggest challenges in cloud computing. Data Cloud enables customers to collect, classify and decipher data across multiple cloud platforms – helping them see all their data in one place.

    All the top cloud providers, Amazon, Microsoft, and Alphabet are all tightly integrated with Snowflake for the benefit of their customers.

    Moreover, Snowflake’s growth is soaring high. It started the year with 241 Fortune 500 companies and 488 Global 2000 companies as its customers.

    But the company expects the number to grow exponentially with upcoming IT upgrades. Its customer base jumped around 30% in the recent quarter to over 8,200 from one year ago.

    Snowflake’s revenue surged 48% year-over-year to $624 million. This comes after a year-over-year revenue climb of 54% and 67% in the previous quarters.

    By fiscal 2024, if Snowflake achieves its forecasted revenue of $2.6 billion, it will have grown its revenue by over 30%.

    Another huge plus is the fact that even Warren Buffet’s Berkshire Hathaway owns $1.2 billion worth of the company’s shares. Snowflake stock is undoubtedly a cloud stock in its hyper-growth mode right now and hence the best buy in 2023.

    Salesforce Inc. (CRM)

    Next stock is another leading name in the cloud computing space, Salesforce Inc. (CRM). Salesforce operates the world’s most popular cloud-based customer-relationship-management (CRM) solution.

    They provide enterprise applications focused on customer services. According to Salesforce, over 150,000 companies use its software for growing their business.

    As per the latest software tracker survey, the company owns a 19.8% share of the global CRM market, which was more significant than the combined share of its top four competitors.

    To continue growing its market share, Salesforce has shown a penchant for making big acquisitions like Slack Technologies. So far, the company has expanded into marketing, e-commerce, and data analytics.

    Since going public in 2004, Salesforce has improved its revenue every year with past 5-year revenue growth at a compound annual growth rate of over 25%. Continuing the trend, it expanded the April-quarter revenue by 13%.

    The company now expects revenue between $34.5 billion and $34.7 billion. Salesforce is continuously growing via mergers and acquisitions while also adding new users, products, and services.

    Thus, at a price of just 25.15 times forward-looking earnings estimates, this stock is available at a low price for a company with 36% revenue growth in the forecast this year.

    Moreover, this cloud computing giant’s stock is up over 60% year to date, which makes it a great buy right now.

    Oracle Corporation (ORCL)

    Next is the Oracle Corporation (ORCL). This cloud computing company addresses enterprise information technology environments throughout the world.

    Over the past ten years, Oracle has expanded its cloud-based database, infrastructure, enterprise resource planning (ERP), and human capital management (HCM) services exponentially.

    It has acquired numerous companies to complete the transformation required to offset the slower growth of its on-site database services. The latest in this acquisition spree is the $28 billion purchase of Cerner.

    Cerner is the second-largest designer of software for the healthcare sector. This takeover accelerated Oracle’s revenue growth by contributing $1.5 billion in the latest quarter.

    On the financial front, the company’s latest quarterly revenues were firm at $12.4 billion.

    The group revenues improved by 18% year-over-year and cloud services and license support sales were impressive with an increase of 17% and 20% respectively.

    Oracle also declared a quarterly cash dividend of $0.40 per share, reflecting a 25% increase over the current quarterly dividend of $0.32.

    While the Cerner acquisition, the company’s long-term prospects seem very bright. Oracle pays a forward yield of 1.51% and has plenty of cash to cover its buybacks and dividends.

    Interestingly, the stock is still quite cheap at 19 times forward earnings. Hence, it is best not to miss out on this cloud computing stock before 2023 ends for your investment portfolio.

    MongoDB (MDB)

    And the final stock on our list is MongoDB (MDB), a New York-based general-purpose database platform provider.

    The company’s platform can be used to build and modernize applications across a range of use cases in the cloud as well as in on-premise or hybrid environments.

    Its flagship product is Atlas, which offers a fully hosted, multi-cloud, database-as-a-service solution. Currently, this solution is available on cloud providers in North America, Europe, and the Asia Pacific.

    Moreover, MongoDB’s document-based database, NoSQL (not-only SQL) is faster and more efficient than its counterpart.

    While there are many who provide NoSQL but MongoDB has emerged as the most in-demand database solution worldwide. Amazon’s partnership with the company is proof of its unshakable position in the market.

    Both companies have a multi-year agreement to offer MongoDB Atlas to Amazon Web Services customers.

    The company’s financial profile adds another reason for investing in it as well. As per the latest quarterly results, MongoDB has continued consistent double-digit top-line growth.

    Revenues were up 29% year-over-year to $368.3 million, while gross profit margin expanded to 74% from 73%. While the earnings were a loss of $0.77 per share, the company cleared the bar with ease against the last year’s per-share loss of $1.14.

    MongoDB and Alibaba have extended their strategic partnership to enhance customer experience by integrating MongoDB and Alibaba Cloud services, benefiting tens of thousands of Alibaba’s customers.

    Hence, given the continued double-digit growth of the company and a price that is up over 49% year-to-date, MongoDB is also among the best cloud computing stocks to buy before 2023 ends.

    Additionally, we have also listed some of the top cloud companies stocks that you might want to invest in 2023:

    No. Ticker Company EPS growth next year Performance (YTD) Price
    1 OSPN OneSpan Inc. 400.00% 32.53% 14.83
    2 CYBR CyberArk Software Ltd. 324.66% 17.42% 152.23
    3 LVOX LiveVox Holdings, Inc. 275.00% -7.07% 2.76
    4 CFLT Confluent, Inc. 164.70% 45.73% 32.41
    5 TLS Telos Corporation 133.30% -43.03% 2.9
    6 CETX Cemtrex, Inc. 100.10% 117.35% 9.41
    7 IOT Samsara Inc. 100.00% 52.94% 19.01
    8 PGY Pagaya Technologies Ltd. 100.00% -8.87% 1.13
    9 ALAR Alarum Technologies Ltd. 99.00% 13.48% 2.72
    10 S SentinelOne, Inc. 98.00% 42.02% 20.72
    11 FLYW Flywire Corporation 91.70% 25.28% 30.66
    12 BAND Bandwidth Inc. 89.63% -47.45% 12.06
    13 AVPT AvePoint, Inc. 86.08% 59.85% 6.57
    14 SNCR Synchronoss Technologies, Inc. 80.00% 58.34% 0.98
    15 HCP HashiCorp, Inc. 76.90% 27.47% 34.85

    Why Invest In Cloud Stocks?

    Investing in cloud computing stocks offers a plethora of enticing opportunities. The global shift towards cloud computing is on the rise, presenting a strong investment case.

    In order to understand what are cloud stocks? We came to know that these stocks belong to companies that provide cloud-based services, infrastructure, or software, which have become integral to countless industries.

    Cloud adoption enhances efficiency, scalability, and cost-effectiveness for businesses, attracting a growing customer base.

    Furthermore, the subscription-based revenue models of cloud companies offer predictable and recurring income streams.

    As cloud technology infiltrates sectors like healthcare, finance, and manufacturing, the growth potential for cloud computing stocks remains substantial.

    With increasing demand and innovation, investing in these stocks can yield impressive returns for astute investors.

    Growth Potential Of Cloud Technology

    The ever-expanding cloud technology landscape is witnessing remarkable progress, thanks to its exceptional scalability, cost-efficiency, and adaptability.

    With an increasing number of businesses transitioning their operations to the cloud, the demand for cloud services is predicted to skyrocket.

    This surge in demand creates an enticing investment prospect for those seeking to seize the opportunities offered by the booming cloud computing industry.

    As cloud technology continues to evolve and dominate the digital sphere, astute investors can position themselves to reap the benefits of this exponential growth and capitalize on the vast potential it holds for the future.

    Advantages Of Investing In Cloud Stocks

    With ongoing technological advancements and the increasing reliance on cloud computing, cloud stocks present compelling opportunities for investors seeking growth and innovation.

    Some of advantages of those opportunities are as follows;

    Advantages

    Description
    Scalability Cloud stocks offer the advantage of scalability, allowing companies to easily adjust their computing resources to meet changing demands efficiently.
    Cost savings Investing in cloud stocks can lead to cost savings as it eliminates the need for on-premises infrastructure, reducing hardware and maintenance expenses.
    Innovation Cloud companies often prioritize innovation, continuously developing and introducing new services and features, which can result in improved stock performance.
    Global reach Cloud stocks provide companies with the ability to reach a global audience, expanding their market potential and generating revenue from various geographic regions.
    Flexibility Cloud investments offer flexibility, enabling businesses to adapt quickly to market conditions and leverage emerging technologies, contributing to long-term growth.
    Security Cloud service providers invest heavily in robust security measures, safeguarding data and protecting against cyber threats, instilling investor confidence.
    Collaboration Cloud technology facilitates collaboration and remote work, which has become increasingly valuable in today’s interconnected and distributed business environment.
    Competitive Investing in cloud stocks allows investors to tap into the growing market for cloud services, positioning themselves to benefit from the industry’s competitive landscape.
    Continuous Cloud stocks provide a continuous revenue stream through subscription-based models, offering predictable cash flows and potentially steady returns for investors.
    Environmental Cloud computing is more environmentally friendly compared to traditional IT infrastructure, reducing energy consumption and carbon emissions, and aligning with sustainable investing trends.

    Strategies For Maximizing Profits In Cloud Stock Investments

    When it comes to maximizing profits in cloud stock investments, strategic approaches can significantly impact success.

    Long-Term Investment Approach

    Taking a long-term investment approach is a prudent strategy when investing in cloud computing.

    By focusing on the underlying fundamentals and growth prospects of cloud companies, investors can ride the wave of long-term industry expansion. This approach requires patience and a willingness to weather short-term market fluctuations.

    • Identifying Quality Cloud Stocks For A Long-Term Portfolio

      Identifying quality cloud stocks involves conducting thorough research and analysis. Investors should consider factors such as the company’s competitive advantage, financial health, management team, and market position.

      Evaluating a company’s revenue growth, profitability, and customer retention rates can provide valuable insights into its long-term potential.

    • Diversification and Risk Management

      Diversification is crucial when investing in cloud stocks. By spreading investments across different companies and sub-sectors within the cloud computing industry, investors can reduce the impact of individual stock volatility.

      Furthermore, implementing risk management techniques, such as setting stop-loss orders and maintaining an appropriate asset allocation, can help protect investments from unexpected market downturns.

    • Stay Informed

      Keep a close eye on market trends, news, and developments in the cloud industry. Stay updated on the latest advancements, mergers, and partnerships to make informed investment decisions.

    • Research and Analysis

      Conduct thorough research and analysis before investing in any cloud stock. Evaluate a company’s financial health, growth prospects, competitive landscape, and management team.

      Look for companies with a proven track record of innovation and market leadership.

    • Monitor Cloud Adoption

      Monitor the adoption rate of cloud services across various industries. Invest in companies positioned to benefit from the increasing demand for cloud computing, data storage, and software-as-a-service (SaaS) solutions.

    • Assess Scalability and Security

      Assess a company’s scalability potential and its ability to handle increased demand. Additionally, prioritize companies with robust security measures in place, as data privacy and protection are critical in the cloud industry.

    • Consider Dividends

      While many cloud companies reinvest their profits for growth, some may offer dividends. Evaluate the dividend policies of companies you’re considering to potentially benefit from both growth and income.

    • Seek Expert Advice

      Consider consulting with financial advisors or experts specializing in cloud investments. They can provide valuable insights, analysis, and guidance tailored to your investment goals and risk tolerance.

    • Continuous Learning

      Stay curious and continuously educate yourself about the evolving cloud industry. Attend conferences, webinars, and industry events to network with professionals and stay updated on emerging technologies that could impact cloud stocks.

    Monitoring And Reviewing Investment Performance

    Monitoring and reviewing the investment performance of stocks in cloud computing requires a comprehensive approach.

    Firstly, it’s vital to analyze financial indicators like revenue growth, profit margins, and cash flow to gauge a company’s financial health.

    Tracking market trends, competitive analysis, and assessing the company’s position in the industry are equally important.

    Additionally, evaluating the company’s research and development investments, partnerships, and acquisitions provide insights into its innovation potential.

    Monitoring cybersecurity measures, data privacy compliance, and regulatory changes are critical due to the sensitive nature of cloud computing.

    Regularly reviewing analyst reports, quarterly earnings, and industry news allows for informed decision-making in this dynamic and rapidly evolving sector.

    Short-Term Trading Strategies

    For investors who prefer a more active approach, short-term trading strategies can be employed in cloud stock investments.

    This involves monitoring market trends, analyzing technical indicators, and identifying short-term catalysts and news events that may impact stock prices.

    By staying informed and executing well-timed trades, investors can capitalize on short-term price movements.

    • Technical Analysis and Market Timing

      Technical analysis involves studying historical price patterns, chart patterns, and various technical indicators to forecast future price movements.

      Combining technical analysis with market timing strategies, such as trend following or contrarian approaches, can help investors make better-informed decisions regarding entry and exit points.

    • Identifying Short-Term Catalysts and News Events

      Keeping track of industry news, product launches, earnings reports, and regulatory developments can provide valuable insights into short-term catalysts that may influence cloud stock prices.

      By staying up to date with relevant news and events, investors can identify opportunities or potential risks in their cloud stock investments.

    • Setting Profit Targets and Managing Risk

      Establishing clear profit targets and implementing risk management strategies are vital components of successful cloud stock investing. Setting realistic profit targets allows investors to lock in gains and avoid being overly greedy.

      Simultaneously, managing risk through position sizing, setting stop-loss orders, and employing trailing stops can help protect against significant losses.

    Frequently Asked Questions

    How To Invest in Cloud Computing Stocks

    Cloud computing investment offers a sky-high opportunity for growth. Begin by researching top players like Amazon, Microsoft, and Salesforce, examining their financials, market position, and future prospects.

    Diversify your portfolio to include emerging cloud companies. Stay updated on industry trends and technological advancements to ride the cloud wave and maximize your investment potential.

    Where To Invest in Cloud Computing Stocks

    Investing in cloud computing stocks is a smart move as the industry continues to skyrocket. With giants like Amazon, Microsoft, and Google leading the charge, the potential for growth is immense.

    Keep an eye on emerging players specializing in AI, cybersecurity, and data analytics to capitalize on the evolving demands of the cloud.

    How To Buy Cloud Computing Stocks

    Here’s the roadmap to invest in cloud computing: Start by researching established players like Amazon (AMZN) or Microsoft (MSFT). Look for companies with innovative solutions and strong growth potential.

    Analyze financials, industry trends, and competitive advantages. Diversify your portfolio and stay updated on emerging technologies. With careful analysis, the cloud can be your investment silver lining.

  • Top 20 AI Stocks To Invest In Now

    As the world continues its push with advanced technologies and smart solutions, the realm of AI continues to prove as being a domain that will dominate the mainstream in the future. The utility it offers, as well as the core advantages it promises, have already been groundbreaking at present, throughout a range of industries and operational areas.

    Healthcare, education, supply chains, production, entertainment, and security are just some of the names that are beginning to see groundbreaking shifts through the incorporation of artificial intelligence. After looking at this enormous growth of artificial intelligence, now investors have also started looking toward AI stocks.

    Given this compelling trend, some of the largest corporate powerhouses have been diversifying their revenue streams and striving to make use of this promising and revolutionary domain. In 2021, investments in AI grew by over 100% since the last year, reaching almost $94 billion.

    As AI continues to expand into different areas, a democratization of the technology will also inevitably take place, allowing small and medium-sized businesses to profit too. In this list, we shed the spotlight on the top  AI stocks that will allow investors an opportunity to cash in on the rapid AI craze. The stocks presented here are the best AI names in the market for the final quarter of 2022.

    AI Stocks

    Types of AI Stocks

    AI stocks come in various forms, each offering a distinct avenue through which investors can ride along the long-term wave. These are great for investors considering where to buy AI stocks from different avenues, enabling them to tap into this exciting sector.

    Some of these are discussed below:

    • Artificial Intelligence Companies

      Investing in established AI companies with a track record of innovation and successful commercialization can provide exposure to diverse AI applications, from autonomous vehicles to healthcare solutions. These make up the most appealing and best AI stocks in the market.

    • Cloud Platforms

      Cloud service providers offering AI infrastructure and tools, like Amazon Web Services (AWS) and Microsoft Azure, present investment opportunities to capitalize on the growing demand for scalable and accessible AI solutions across industries.

    • Virtual Assistants

      Investing in virtual assistant technologies, such as Amazon’s Alexa or Apple’s Siri, can tap into the increasing adoption of voice-activated AI interfaces and the integration of AI-powered assistants in various consumer and enterprise applications.

    • Digital Transformation Technologies

      Market players should consider to invest in AI stocks that are integrated into digital transformation technologies that optimize operations, improve decision-making, and enhance customer engagement, including automation, analytics, and predictive modeling solutions.

    • Neural Networks & Language Models

      Another avenue to invest in AI stocks is through the core technology of AI applications by supporting advancements in neural networks and language models, which power various AI-driven solutions and contribute to the development and deployment of cutting-edge AI systems.

    • Natural Language Processing Tools

      Finally, investors can also consider NLP tools to leverage the importance of understanding and processing human language in AI systems, enabling tasks like sentiment analysis, language translation, and chatbot development, offering opportunities in the growing NLP market.

    Factors to Consider When Investing in AI Stocks

    When seeking the best AI stocks to invest in, it is essential to navigate the market with a comprehensive understanding of the factors at play. These are discussed below as follows

    • Understanding the AI Market Landscape

      Investors should have a clear understanding of the AI market, including its size, growth potential, key players, and emerging trends. This knowledge helps in identifying promising investment opportunities and avoiding companies with limited prospects.

    • Evaluating Company Fundamentals and Financial Health

      Assess the financial strength, revenue growth, profitability, and sustainability of AI stocks, ensuring that the companies demonstrate solid fundamentals for long-term success in the AI industry.

    • Analyzing Competitive Advantage and Differentiation

      Look for AI stocks that possess a unique competitive advantage, such as proprietary technology, intellectual property, partnerships, or a differentiated product or service, which sets them apart from competitors.

    • Assessing Leadership and Management Team

      Evaluate the leadership and management team of AI stocks, considering their expertise, experience, strategic vision, and ability to navigate the complex AI landscape effectively.

    • Monitoring Market Trends and Technological Advancements

      Stay abreast of market trends and technological advancements impacting AI stocks, as the industry evolves rapidly. Investing in companies that adapt to emerging trends and embrace new technologies can position you for long-term success in the AI sector.

    List of AI stocks

    Berkshire Grey Inc.

    To start off our list of AI stocks, we begin with Berkshire Grey Inc., (BGRY) an AI-assisted robotics company.

    Berkshire Grey is not only an AI-assisted robotics company that specializes in supply chain automation but also holds a strong presence in the US and Japan.

    With a focus on automating industrial manual processes, BGRY benefits from tailwinds such as e-commerce demand, competitive pressures, and labor scarcity.

    The company has achieved a 12% compound annual growth rate, and in Q2 2022 alone, experienced remarkable year-on-year revenue growth of 420%.

    With major clients like Walmart, Target, and FedEx, Berkshire Grey is positioned as a leading player in the AI industry with excellent growth potential.

    Microsoft Corporation

    The second stock on our list of AI stocks is the software kingpin, Microsoft Corporation (NASDAQ: MSFT). Microsoft, at this point, is a household name, given its leadership in the operating software domain.

    Microsoft possesses the financial strength and wide reach to extend its influence into the AI space.

    With its AI-as-a-Service approach, Microsoft aims to make AI tools accessible to non-programmers, potentially transforming sectors like healthcare, education, and retail. Azure Cognitive Services, a key project, offers AI packages for integration.

    With substantial cash reserves and liquid investments, Microsoft has the capability to execute its ambitious AI strategy, making it an excellent choice for investors seeking a robust stock with short-term AI leadership potential.

    Snowflake Inc.

    Moving on, we take a look at the cloud-based data platform provider, Snowflake Inc., (NASDAQ: SNOW) a US-based multinational company.

    Snowflake offers a competitive advantage by supporting AI processes and fast analysis of unstructured data.

    With impressive revenue growth of 83% year-on-year and a net revenue retention rate of 171%, Snowflake demonstrates strong customer monetization and a sustainable business model.

    As a result, SNOW is a compelling stock choice for investors looking to capitalize on the AI-led growth wave, backed by its unique technology and market performance.

    C3.ai Inc.

    Next up, at number four on our list is the AI enterprise software company, C3.ai Inc., (NYSE: AI). C3.ai is a company with an international presence valued by the market at $1.6 billion.

    C3.ai specializes in predictive modeling for functions like fraud detection and asset replacement. With a unique partner ecosystem approach, C3 collaborates with industry leaders to deliver industry-specific products, driving two-thirds of its revenue.

    Despite the recent stock performance, its customer count is growing by 50% and topline growth amounts to 38%. Overall, C3 presents an attractive opportunity for investors seeking a potentially undervalued AI stock poised for future growth.

    ZoomInfo Technologies Inc.

    Next up on our list of AI stocks is ZoomInfo Technologies Inc. (NASDAQ: ZI). ZoomInfo leverages AI to deliver smart solutions and maximize efficiency for clients.

    As a market leader with strong pricing power and an impressive 80% gross margin, ZoomInfo stands out in its industry.

    With a growth-oriented business model and a diverse partnership ecosystem including innovative clients like Uber, Shopify, and Zoom, ZoomInfo is poised for substantial growth.

    Guided by a projected 45% growth rate and increased free cash flows, ZoomInfo is an attractive AI stock for investors seeking a rising star with minimal competition and a strong market position.

    Salesforce

    Salesforce Inc. (NYSE: CRM) is an excellent AI investment due to its established record of innovation and growth. As a CRM market leader, it has become a prominent provider of AI-powered solutions.

    With its AI platform, Einstein, businesses of all sizes enhance customer relationships, sales, marketing, and service.

    When considering where to invest in AI stocks, Salesforce is compelling given its history of innovation, a vast customer base of over 150,000 clients for extensive data training, diverse AI solutions like Einstein Vision and Discovery, and strong financial performance.

    With these factors, investors seeking AI exposure should consider Salesforce for long-term growth potential.

    Okta

    Okta is an attractive AI investment as a leading provider of AI-powered identity and access management (IAM) solutions. With a large and growing IAM market, Okta’s strong competitive position and financial performance make it a compelling choice.

    The company’s focus on innovation, broad customer base, and strategic partnerships with major tech companies further enhance its growth potential.

    Investors seeking AI exposure should consider Okta for its industry leadership, innovation-driven approach, and wide customer reach, making it a solid investment opportunity.

    Nvidia

    The computing and graphics giant, NVIDIA Corporation (NASDAQ: NVDA) worth almost $1 trillion is another phenomenal AI pick to consider.

    NVDA’s data center revenue has been surging due to AI’ total addressable market expansion and a new product cycle, despite weaker enterprise/cloud spending.

    Moreover, supply is increasing significantly for data center-related products, positioning NVDA to capitalize on generative AI demand. This makes NVDA a prime option for those considering where to invest in AI stocks.

    Nvidia’s robust enterprise demand for AI and accelerated computing outweighs macro headwinds, and NVDA’s H100 chip is preferred for AI training and inference.

    The company also boasts high-profile partnerships with Meta, Microsoft, Google, and Oracle, which is further fueling NVDA’s growth.

    As the AI market expands, NVDA’s position in generative AI and accelerated computing makes it an enticing investment with expectations of continued growth and higher stock performance in the upcoming quarters.

    BigBear.ai

    BigBear.ai Holdings (NYSE: BBAI) is a promising investment due to its fast growth and strong alignment with AI and machine learning.

    With a focus on autonomous systems, cybersecurity, and supply chain logistics, BigBear.ai offers valuable customer insights.

    By leveraging big data, the company empowers customers to make informed decisions and achieve their operational objectives effectively.

    With its diverse range of services and a commitment to leveraging AI technologies, BigBear.ai is well-positioned to capitalize on the growing demand for data-driven solutions, making it an attractive investment opportunity.

    Vertiv Holdings

    Vertiv Holdings (NYSE: VRT) presents a compelling investment opportunity due to its strong presence in the data center market.

    With NVIDIA’s positive comments on the exponential growth of generative AI, Vertiv’s expertise in areas like thermal management and control positions it well to benefit from the shifting data center landscape.

    As the demand for accelerated computing driven by generative AI intensifies, existing data center capacity will need to be optimized and repurposed.

    Vertiv is poised to capitalize on this trend as data center operators strive to extract more computing power from tight spaces and increase rack densities.

    With a growing market and increasing computing requirements, Vertiv stands as a promising investment in the data center industry.

    SentinelOne

    SentinelOne (NYSE: S) is yet another exceptional investment choice in the dynamic cybersecurity sector.

    With its AI-driven autonomous endpoint protection and strategic partnerships with industry giants like Amazon Web Services and Microsoft, the company is well-positioned for robust growth.

    In Q4 2022, SentinelOne achieved an impressive 92% YoY revenue growth, showcasing its resilience and financial prowess.

    With its Singularity platform and strategic acquisitions, SentinelOne is a frontrunner in the rapidly expanding cybersecurity market, projected to reach $266.2 billion by 2027.

    Although facing competition and evolving threats, SentinelOne is expected to outperform market expectations, making it an attractive investment opportunity.

    Digital Realty

    Digital Realty (NYSE: DLR) is an excellent AI investment due to its global presence in data centers, positioning it to benefit from the AI revolution. Unlike many AI-focused tech stocks, DLR offers investors a meaningful yield, making it an attractive choice.

    With over 5,000 customers, including industry giants like Microsoft and Meta Platforms, DLR provides colocation and interconnection solutions across 28 countries and 300 facilities.

    Following its acquisition of Telx, DLR’s expanding international footprint solidifies its position as a top data center provider. As AI continues to evolve, DLR stands to gain from the incremental growth opportunities in this nascent field.

    Marvell Technology

    The data infrastructure and semiconductor company, Marvell Technology (NYSE: MRVL) is a compelling AI investment based on its strong performance and optimistic outlook.

    The company’s recent earnings release showcased significant growth in AI-related revenue, with management raising guidance and projecting a CAGR of 100% in AI revenue from FY23 to FY25.

    Marvell’s leading solutions in networking, including PAM4 optics and DSP, are well-positioned to support the increasing demands of AI data centers.

    With cloud service providers retooling their architecture and the importance of AI rapidly rising, Marvell stands to benefit from this substantial opportunity. The company’s focus on bandwidth and cloud-optimized solutions further solidifies its position in the AI market.

    iRhythm Technologies

    iRhythm Technologies (NASDAQ: IRTC) presents a strong investment opportunity in the AI space due to its leading position in the US ambulatory cardiac monitoring market.

    Moreover, IRTC’s unique tech, Zio monitors, which runs with advanced AI and machine learning algorithms, enables high-precision detection of arrhythmias.

    The innovative Zio XT and Zio AT patch monitors provide extended wear time and incorporate Bluetooth technology for mobile cardiac telemetry.

    These advancements improve efficiency and diagnostic capabilities, reducing the need for inconclusive tests. Despite short-term challenges, iRhythm’s compelling long-term outlook, revenue expansion opportunities, and profitability potential make it an attractive investment.

    Advanced Micro Devices

    Advanced Micro Devices (NASDAQ: AMD) is a compelling AI investment due to its strong position in the semiconductor market and its focus on AI capabilities.

    The company’s upcoming AI event is expected to drive further momentum for the stock, and AMD’s CEO Lisa Su has demonstrated a long-term commitment to the competitive semiconductor market.

    With increased investment in research and development, AMD is well-positioned to capitalize on the growing demand for AI tools and chips.

    The company’s expansion in the server and desktop markets, along with its strategic acquisitions, indicate its growing popularity and potential for market share gains.

    As the demand for AI continues to rise, AMD has the potential to become a significant player in the AI chip market, further driving its growth.

    AudioCodes

    AudioCodes (NASDAQ: AUDC) presents a potential AI investment opportunity due to its Voice AI business line.

    The company is investing considerably in developing conversational AI capabilities, which can enhance customer satisfaction by integrating telephony channels into text-based chatbots.

    With strong growth projected in this segment, AudioCodes is well-positioned to benefit from increasing demand for Voice AI solutions.

    The company’s competitive advantage lies in its lack of strong competitors in this field and the potential to connect its Voice AI product to cognitive services like ChatGPT.

    If a fraction of ChatGPT’s vast user base chooses AudioCodes’ devices, it could lead to a significant sales boost.

    Shutterstock

    Shutterstock (NYSE: SSTK), the illustrative and digital content provider, presents a promising AI investment opportunity due to its strategic partnership with OpenAI.

    This collaboration allows OpenAI’s tools to be integrated into SSTK’s platform, enabling customers to generate AI content based on keyword inputs. The partnership has already shown significant results, with increased subscriptions and content on the platform.

    By leveraging the current interest in AI, this partnership provides SSTK with marketing advantages.

    If SSTK can successfully convert a portion of the new platform users into customers of their other product offerings, the partnership will not only yield short-term benefits but also provide long-term advantages of being seamlessly integrated with AI technology.

    Accenture

    Accenture (NYSE: ACN), the professional consultancy, is a stock that presents a compelling AI investment opportunity due to its collaboration with Salesforce to accelerate generative AI deployment in CRM technologies.

    This partnership demonstrates Accenture’s commitment to AI innovation and positions it as a leader in implementing and optimizing AI solutions.

    By establishing an acceleration hub for generative AI, Accenture, and Salesforce aim to streamline and enhance CRM capabilities for clients across industries.

    Additionally, Accenture’s acquisition of Flutura, an industrial AI company, strengthens its AI capabilities in the industrial sector, allowing it to deliver more value to clients and capitalize on the growing trend of digital transformation and sustainability.

    These initiatives have the potential to drive increased revenues and profitability for Accenture, making it an attractive pick among AI stocks.

    NICE

    NICE ltd. (NASDAQ: NICE) is positioned as a strong player in the field of conversational AI, which presents an exciting opportunity for investors.

    The company’s custom-built AI engine, Enlighten, integrated into its CXone platform, showcases its commitment to leveraging AI technology in customer experience management.

    NICE’s focus on cloud adoption and improving cloud margins is a positive sign, indicating its ability to capitalize on the AI-driven digital transformation wave.

    While there may be challenges associated with AI’s impact on margins and profitability, NICE’s innovative approach and industry-specific domain expertise make it well-positioned to succeed in the AI space.

    By closely monitoring NICE’s financial performance and market adoption, investors can potentially benefit from its growth potential in the AI sector.

    Machine Learning Stocks

    Machine Learning Stocks

    While AI has all its factors of appeal and dynamic strengths, the following are some powerful AI picks that excel specifically in the machine learning realm:

    • AdTheorent Holding Company, Inc. (NASDAQ: ADTH)
    • AgileThought Inc. (NASDAQ: AGIL)
    • PagerDuty Inc. (NYSE: PD)
    • Semantix Inc. (NASDAQ: STIX)
    • Kubient Inc. (NASDAQ: KBNT)

    Investment Strategies for AI Stocks

    Setting appropriate investment strategies for AI stocks is crucial to maximize returns and manage risks effectively in the dynamic and rapidly evolving AI market, ensuring alignment with your financial goals and risk tolerance.

    Investment Strategies for AI Stocks

    • Long-Term Investing vs. Short-Term Trading

      It is crucial to determine your investment horizon and risk tolerance to decide between long-term investing or short-term trading strategies.

      For long-term investors, focus on the potential growth and fundamentals of AI stocks, while short-term traders may capitalize on market volatility and short-term price movements.

    • Diversification and Portfolio Allocation

      Investors targeting the AI sphere should spread their investments across a range of AI stocks to manage risk effectively

      Diversification helps mitigate the impact of individual stock volatility and industry-specific risks, creating a balanced portfolio that can weather fluctuations in the AI market.

    • Dollar-Cost Averaging

      Investors may also employ dollar-cost averaging by regularly investing a fixed amount in AI stocks over time.

      This strategy helps reduce the impact of short-term market volatility, allowing investors to accumulate shares at different price points, potentially leading to a more favorable average purchase price.

    • Setting Realistic Investment Goals

      It is also critical for investors to define clear and realistic investment goals aligned with their risk tolerance and broader financial objectives.

      One must consider factors like expected returns, time horizon, and desired level of involvement to guide your decision-making when evaluating the question “Is AI a good stock to buy”.

    • Monitoring and Rebalancing Portfolios

      Investors should continuously monitor AI stocks and their performance against their investment goals.

      To do this, one must periodically rebalance their portfolio by adjusting allocations based on changing market conditions or maintaining the desired risk-return profile, ensuring the investments remain aligned with the investment strategy.

    Future Trends and Growth Opportunities in the AI Industry

    Knowing about future trends and growth opportunities in the AI industry is crucial for informed decision-making and positioning investments to capitalize on emerging technologies and market shifts.

    Future Trends and Growth Opportunities in the AI Industry

    Knowledge of these trends would allow AI investors to maximize the potential for long-term profitability and stay ahead in the competitive AI landscape. The following are the most important trends to keep track of in the present age:

    • AI Adoption in Healthcare and Medicine

      The increasing adoption of AI in healthcare presents investors with opportunities to support innovative solutions for a range of healthcare-related functions.

      These include diagnostics, personalized medicine, drug discovery, and telemedicine, as the industry seeks to improve patient outcomes and operational efficiencies.

    • AI Applications in Autonomous Vehicles

      The integration of AI in autonomous vehicles opens avenues for investment in a number of lucrative domains.

      The most phenomenal of these is the self-driving car concept and intelligent transportation systems. Together these are set to revolutionize the transportation industry, improving safety, efficiency, and mobility while transforming the way people & goods are transported.

    • AI in E-commerce and Personalized Recommendations

      AI’s role in e-commerce offers investment potential, as AI-powered recommendation engines enhance customer experiences, enable targeted marketing, and optimize supply chain management.

      These transformations are contributing to surges in sales growth and customer loyalty in the competitive e-commerce landscape.

    • AI-driven Automation and Robotics

      Investments in AI-driven automation and robotics technologies cater to the growing demand for enhanced productivity and efficiency across industries.

      These solutions automate repetitive tasks, optimize operations, and drive cost savings, making them attractive investment prospects.

    • AI for Natural Language Processing and Virtual Assistants

      Natural language processing and virtual assistants are experiencing significant growth, driven by the increasing demand for voice-controlled devices and conversational AI.

      Investing in AI technologies that understand and interact with human language opens opportunities in areas such as customer service, virtual agents, and voice-activated applications.

    Conclusion

    AI is, by every market analyst’s estimation, proving to be a revolutionary game-changer for a wide array of different industries. This opportunity is not something present only in the distant future, but is already prevalent in different forms throughout different areas, resulting in groundbreaking results.

    For this reason, investors would do well to consider immediate investment in the most promising stocks that hold substantial exposure to AI. The AI stocks listed in this list are each highly promising and are very likely to be flying in the final quarter of 2022.

    Frequently Asked Questions

    Where To Buy AI Stocks?

    AI stocks can be bought from online brokerage platforms and traditional brokerage firms. They provide investors with accessible options to participate in the growth of the AI industry.

    Is AI A Good Stock to Buy?

    AI is a good stock to buy due to its potential for growth and innovation, with increasing adoption across industries and the transformative impact of AI technologies on various sectors.

    Where To Invest in AI Stocks?

    Investors can consider investing in AI stocks through stocks of AI-based application companies, cloud platforms, virtual assistant applications, neural networks, or natural language processing systems.

  • Snowflake Inc. (SNOW)’s Outlook Disappoints, Shares Reach Below IPO Price, Buy/Sell/Hold?

    The stock market has faced severe blows in 2022 so far amid the geopolitical and economic situation. Its steep drop has incited panic and panic has further fueled the sell-off. However, taking an enormous hit are the technology stocks which have fared relatively worse. The reason is their higher uptick in the last two years as the pandemic led to a technological revolution. The tech-heavy Nasdaq is currently in the bear market territory with losses from its highs extending to nearly 30%. But amid this downfall, many cloud stocks have fallen much lower with Snowflake Inc. (SNOW) down over 60% year to date.

    In September 2020, SNOW, with its stellar customer growth, pulled off the largest IPO ever by a software company, raising $3.4 billion. With an IPO price of $120, the stock then rallied to near $400 within months. However, 2022 has brought about a severe downfall in the stock. With its debatable valuations, stellar revenue growth, and bullish industry outlook, the stock has mixed reviews right now.

    What’s the Latest?

    On May 25, the company came out with financial results for the first quarter of fiscal 2023. The company’s earnings and revenues surpassed the consensus estimates. But the whole year’s guidance fell below the expected, which led the stock on a downtrend post the earnings release. Hence, the SNOW lost 14.14% in the pre-market to reach $114.00, falling well below its IPO price. This downtrend followed an increase of 2.42% in the prior session, which had the stock valued at $132.47 per share.

    SNOW’s Earnings Highlights

    The cloud-based data warehousing company posted revenues of $422.37 million, which improved by 85% YOY. The quarterly revenues surpassed the consensus estimate by 3.11%.

    Growing 85% YOY was the product revenue of $394.4 million while remaining performance obligations totaled $2.6 billion.

    For the quarter ended April 30, 2022, SNOW had a net revenue retention rate of 174% while the details of customers are in the chart below:

    Source: SNOW’s Q1 Presentation

    The company’s quarterly earnings stood at $0.01 a share, while analysts were expecting a loss of $0.01 per share. On the other hand, the year-ago loss was $0.24 per share on an adjusted basis.

    The first quarter of fiscal 2023 witnessed a record non-GAAP adjusted free cash flow of $181 million.

    Fiscal 2023 Guidance & Future Outlook

    For the full-year fiscal 2023, the company provided the following guidance:

    Source: Company Q1 Presentation

    The company’s guidance for the fiscal year came below the analysts’ expectations, which caused the recent sell-off of the stock. Analysts were expecting earnings of $0.12 million on revenues of $2 billion for the full year. For the ongoing quarter, the consensus estimate is an EPS of $0.01 on revenues of $464.02 million.

    Experts are of the opinion that the company’s revenue will grow by 55% in 2024 with earnings of $0.38 per share by then. The company has plenty of revenue growth potential ahead. A Morgan Stanley analyst recently said that there is a huge opportunity for the company to amass and expand more to Fortune 500 and Global 2000 customers. At the present, its Fortune 500 customers pay an average of $1.0-$3.5 million to the company. Roughly two-fifths of Fortune 500 companies use SNOW’s software in the cloud, with giants like Pfizer as its customers.

    The cherry on top, data cloud, and cloud warehouse is an ever-expanding ecosystem with exponential growth in the years to come.

    SNOW’s Valuation

    Given the fact that the company isn’t fully profitable yet, its P/E ratio isn’t suitable for analyzing the valuation of the stock. On the other hand, the stock is currently trading at a P/S ratio of 33. Compared to its industry peers, the P/S ratio is very high, as Amazon has 2.7, Oracle 4.5, and Microsoft 9.8. However, the wider sentiment is that the stock is undervalued due to its exponential revenue growth YOY. Its strong cash position, no net debt, and huge positive free cash flow all support the idea of it being undervalued.

    Furthermore, analysts have pegged its average price target above $275 a share. This represents an upside of over 110% from its current price levels.

    Conclusion

    While the opinions on SNOW’s current valuation are mixed with an affinity towards it being undervalued, the company does have a bullish long-term outlook. The company boasts a strong profile with positive free cash flow and a huge net revenue retention rate. With a bullish outlook of the industry and its strong, improving position near profitability, SNOW has a bright future ahead. The stock might not be a buy right now but as it nears profitability in the fundamental shift towards cloud computing, it would definitely be a good value stock to add to one’s portfolio.

  • Beat Q4 FY22 but Poor Outlook: Snowflake Inc. (SNOW) Plunges Down Premarket

    On March 2, Snowflake Inc. (SNOW) posted its financial results for Q4 fiscal 2022 along with a future outlook. While the company beat its expectations for the Q4 FY22, the weak future outlook disappointed investors. Consequently, the stock took a harsh hit as it plunged deep down in the premarket on Thursday.

    In the previous regular trading session, the stock barely kept in the green with a slight gain of 0.57%. In intraday trading, the stock varied between $250.58 and $268.50. At an active volume of 13.37 million, SNOW closed the session at $264.69 per share. Following the announcement, the stock had plunged down by a huge 22.18% in the premarket, at the last check on Thursday. Hence, at the time of writing, SNOW was trading at a price of $206.30 per share in the premarket.

    The cloud data warehousing software solutions provider, Snowflake Inc. was founded in 2013. With a market capitalization of $80.62 billion, the company has 306.3 million shares outstanding. Currently, SNOW stands at a year-to-date loss of 21.53% while it increased by 6.30%.

    SNOW’s Fiscal 2022 Q4

    The company’s Q4 fiscal 2022 ended on January 31, 2022.

    SNOW had revenue of $383.8 million with an increase of 101% YOY in fiscal Q4 2022.

    Moreover, product revenue increased by 102% YOY to $359.6 million.

    Furthermore, the company reported 5,944 total customers including 184 customers with a trailing 12-month product revenue of more than 1$ million.

    The non-GAAP adjusted free cash flow was $102.1 million in the quarter.

    Future Outlook

    For Q1 fiscal 2023, the company expects product revenue between $383 and $388 million with YOY growth of 79-81%.

    Additionally, for the full-year fiscal 2023, the expected revenue is $1880-$1900 million with 65-67% YOY growth.

    Source: Investopedia

    SNOW’s Intent to Acquire Streamlit

    On Wednesday, the company also announced signing a definitive agreement with Streamlit for its acquisition. Streamlit is a framework built for the simplification and acceleration of data applications creation.

    The acquisition will lead to the companies enabling developers for building apps using tools they prefer with simplified data access and governance.

    Other Developments

    On January 31, SNOW announced maintaining a perfect recommend score in the 2022 Wisdom of Crowds Analytical Data Infrastructure (ADI) Market Study. The company ranked as an Overall Leader in Customer Experience as well as Vendor Credibility. This marked the fifth consecutive year for 100% of the company’s customer participants to say that they would recommend it to other organizations.

  • Snowflake Inc. (SNOW) Stock Taking Giant Leaps in Aftermarket, Here’s the Reason

     Snowflake Inc. (SNOW), a company that provides a cloud-based data platform, has surged 16.24% in aftermarket trading session. As a result, SNOW stock is trading at 361.50 at the time of the writing. The surge could be attributed to the announcement of quarterly results. On Wednesday, SNOW closed the day at $311 after sliding 8.53% during the regular trading session.

    Why SNOW Surging?

    In the late hours of Wednesday, SNOW released the operational results for the third quarter of the fiscal year 2022. The quarter ended on 31st October. The company generated total revenue of $334.4 million during the quarter against $159.6 million during the same quarter of 2020. The total operating expenses for the period were $370.9 million against $262.3 million for the same period of 2020. The net loss suffered by the company during the quarter was $154.8 million (or $0.51 per basic and diluted share) against $168.8 million (or $1.01 per basic and diluted share) for the same quarter of 2020.

    Financial Guidance

    Alongside the operational results, SNOW also released the financial guidance for the full-year fiscal 2022. The company expects to generate product revenue in the range of $1.126 billion to $1.131 billion during the full year. The product gross profit margin is expected to stand at 74% during the fiscal. The operating loss margin could be about 4%, while the margin of adjusted free cash flow could hover around 8% during the quarter.

    Executive Commentary

    Frank Slootman, Chairman and CEO of SNOW, while commenting on the results said that the company saw the momentum accelerate during the third quarter, as its product revenue grew over 110% on a year-over-year basis. He said that the vertical industry focus by the company is an important evolution of its selling motion. He hoped that the company would continue to see broad industry options n the future.

    Future Outlook for SNOW

    The last six months have seen SNOW stock surge by approximately 30%. But during more recent days, the stock has amassed losses. However, as some of the past developments depict, the company is capable of recovering in a quick time. So, potential investors should keep a close eye on the fluctuations of SNOW stock.