Snowflake Stock Is On Fire Thursday: What's Fueling The Move?

Snowflake Inc SNOW shares are trading higher Thursday after the AI data cloud company reported strong results for the first quarter. Multiple analysts raised price targets following the report. Here’s a look at what’s going on.

What To Know: Snowflake reported first-quarter revenue of $1.04 billion and adjusted earnings of 24 cents per share. The headline numbers topped analyst estimates of $1.01 billion and 21 cents per share, according to Benzinga Pro.

Total revenue climbed 26% year-over-year, with product revenue also rising 26% to $996.8 million. Snowflake reported a net revenue retention rate of 124% for the quarter.

Remaining performance obligations reached $6.7 billion, up 34% from a year ago. The company closed the quarter with 606 customers generating over $1 million in trailing 12-month product revenue and held approximately $2.24 billion in cash and cash equivalents at quarter’s end.

Snowflake guided for second-quarter product revenue in the range of $1.035 billion to $1.04 billion, up approximately 25% year-over-year. The company also guided for 25% product revenue growth on a full-year basis.

“Snowflake's mission is to empower every enterprise to achieve its full potential through data and AI … We see an enormous opportunity ahead as we extend this value throughout the full data lifecycle,” said Sridhar Ramaswamy, CEO of Snowflake.

Following the print, several analysts raised price targets on the stock, which appears to be helping drive shares higher Thursday morning.

• Piper Sandler reaffirmed an Overweight rating and raised its price target from $175 to $215.

• Needham maintained a Buy rating and raised its price target from $215 to $230.

• Rosenblatt maintained a Buy rating and raised its price target from $205 to $210.

• UBS maintained a Neutral rating and raised its price target from $200 to $210.

Piper Sandler named Snowflake one of the firm’s highest conviction growth ideas for the remainder of the year, pointing to increased confidence following the company’s strong guidance raise.

SNOW Price Action: Snowflake shares were up 9.21% at $195.63 at the time of publication Thursday, according to Benzinga Pro.

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