Snowflake Explodes 37% on $6 Billion Amazon Deal as CEO Calls Q1 an AI "Inflection Point"
Snowflake said AI demand and stronger core platform momentum lifted product revenue 34% and drove a higher full-year forecast.
- On Thursday, Snowflake shares surged as the cloud software company posted forecast-beating Q1 results and announced a $6 billion, five-year expansion of its partnership with Amazon Web Services tied to artificial intelligence.
- Snowflake had spent much of this year under pressure, with shares down 20% year-to-date before the report amid skepticism regarding how artificial intelligence disruption might affect software vendors.
- The company reported Q1 product revenue of $1.33 billion, up 34% year-over-year, and raised full-year product revenue guidance to $5.84 billion, implying 31% growth, while non-GAAP earnings per share reached $0.39.
- Snowflake's five-year commitment to Amazon Graviton CPUs and AI infrastructure aims to accelerate enterprise adoption, with more than 13,600 accounts now utilizing the company's AI capabilities including Cortex Code.
- At least 25 analysts raised their price targets following the announcements, positioning the median target at $275 from $230 before the report, though some cautioned that AI products may carry lower gross margins than established platforms.
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The mood is strained by a renewed military shock exchange between the US and Iran. Snowflake convinces with strong numbers and an increased forecast.
Snowflake surged on New York stock exchanges on Thursday. The cloud service provider and software developer raised its full-year revenue forecast following better-than-expected quarterly results. The company also signed a multi-year, $6 billion agreement with Amazon for the use of cloud services and chips from Amazon Web Services, the cloud division of the tech and e-commerce giant. Snowflake stock rose nearly 34 percent.
Snowflake Stock Price: Why Did The Cloud Software Firm's Shares Surge By 40%?
Snowflake's shares surged on Thursday after the cloud software company beat quarterly expectations, lifted its outlook and deepened its ties with Amazon Web Services in a deal worth $6 billion (£4.47 billion) over five years. The move, which sent SNOW sharply higher in premarket trading, reflected a market suddenly more convinced that artificial intelligence is feeding through to real demand rather than just tidy investor rhetoric. To recall, Sn…
Snowflake Explodes 37% on $6 Billion Amazon Deal as CEO Calls Q1 an AI "Inflection Point"
Shares of Snowflake (NYSE:SNOW | SNOW Price Prediction) are rocketing higher on Thursday morning, with the stock up 35% to around $240 after the company posted a blowout Q1 FY2027 report and unveiled a $6 billion multiyear deal with Amazon‘s (NASDAQ:AMZN) AWS (Amazon Web Services). SNOW stock closed at $175.26 on Wednesday. The move would ... Snowflake Explodes 37% on $6 Billion Amazon Deal as CEO Calls Q1 an AI “Inflection Point”
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