Changes in US stocks | Snowflake (SNOW.US) fell sharply at the beginning of the session by nearly 10% Wall Street is still positive, growth has slowed slightly but is still strong

The Zhitong Finance App learned that after announcing the third quarter earnings report and outlook, the stock price of Snowflake (SNOW.US) fell nearly 10% in early Thursday trading. Despite short-term pressure, most Wall Street institutions continue to give positive ratings due to stock price increases of more than 70% since this year and AI business growth exceeding expectations.

Citizens analyst Patrick Walravens pointed out that although Snowflake's growth slowed from 32% in the previous quarter to 29% in the previous quarter, it was still an impressive performance for the scale of its business.

Snowflake has added 370 new features this year, covering areas such as analytics, data engineering, artificial intelligence, and application collaboration. Among them, the enterprise-level AI agent Snowflake Intelligence, which was fully opened in the third quarter, has achieved an AI revenue annualized level (AI run-rate) of 100 million US dollars, and appeared one quarter earlier than expected.

Citizens maintains a “outperforming the market” rating, with a target price of $325.

Additionally, Snowflake's Serviceable Market (TAM) is expected to expand from $170 billion in 2024 to $355 billion in 2029, showing significant room for long-term growth.

Canaccord Genuity analysts Kingsley Crane and Daniel Reagan emphasized that the most critical highlight of this quarter was that the AI business reached 100 million US dollars in annualized revenue. At the same time, Snowflake announced a new cooperation agreement with Anthropic of 200 million US dollars, which will bring more synergy benefits at the GTM (go-to-market) level. Canaccord raised Snowflake's target price from $260 to $270 and reaffirmed the “buy” rating.

Cantor also maintained an “overweight” rating, and the target price was raised from $275 to $278. However, analyst Thomas Blakey pointed out that the pressure on stock prices was mainly due to product revenue being only 2.7% higher than the guideline median value, which did not meet market expectations by “more than 3% exceeding expectations,” while operating profit failed to further exceed expectations in the third quarter.

Wedbush also reaffirmed the “outperform the market” rating and maintained a target price of $270, while continuing to include Snowflake on the Ives AI 30 list.