There have been some worries about a decrease in cloud consumer use. Still, investment firm Citi claimed Snowflake (NYSE:SNOW) projects are “more resilient” than others as the data warehousing business prepares to announce its results for the fourth quarter next week.
According to buy-rated analyst Tyler Radke, the fiscal 2024 revenue forecast might be cautious due to the adjustment for Graviton improvements in fiscal 2023 and bigger clients ramping up. However, he still anticipates a “more normal beat and reiteration.”
In a letter to clients, Radke said, “Snowflake is one of our top hyper growth stocks as we view the firm well positioned to extend the conventional data warehouse market into non-technical users and new sectors and gain momentum in novel AI/ML workloads and operational [database]/apps.”
On Thursday morning, before the market’s opening, shares of Snowflake rose by 2.3%.
Data and analytics remain a primary focus, as indicated by results from Alteryx, Teredata, and Informatica on cloud annual recurring revenue. Radke highlighted that even while some cloud service platforms have reported a “significant” decrease in consumption, Snowflake’s partners remarked that its projects were “more robust.”
“Our intra-quarter check-in with the firm showed that Q4 forecast reflected greater caution with holiday seasonality, which hampered Q4 performance a year ago,” Radke said further.
The general view among financial experts is that Snowflake will earn 5 cents per share during the fourth quarter on sales of $575.18 million.
Last week, the hedge fund 3G Capital said that during the last quarter, it had opened a new position in the cryptocurrency known as Snowflake and made various other adjustments to its portfolio.
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