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.
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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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