New Data Partnerships Might Change the Case for Investing in Snowflake (SNOW)

• In recent weeks, clients announced new collaborations with Snowflake, such as Parameta Solutions' OTC data on its marketplace, Chalo's data infrastructure modernization, Cint Group's Verified Audiences integration, and a partnership with Bloomreach to enable personalized marketing solutions using Snowflake's AI Data Cloud.
• These developments highlight accelerating adoption of Snowflake’s core platform across financial services, customer intelligence, and enterprise marketing, offering clients immediate access to diverse data sets and advanced analytics capabilities.
• We'll examine how Snowflake's expanded marketplace offerings, including financial and marketing data integrations, influence the company’s investment narrative and outlook.

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Snowflake Investment Narrative Recap

To own Snowflake shares, you need to believe in continued rapid adoption of its AI-driven data platform, with expanding marketplace integrations fueling future revenue growth. While the latest client partnership announcements show momentum with new verticals and data sources, they do not materially shift the biggest near-term catalyst, acceleration in new product adoption, or the risks tied to revenue recognition variability from large enterprise contracts.

The announcement of Parameta Solutions' OTC data joining Snowflake Marketplace is especially compelling, as it expands financial institutions’ instant access to trusted market data right within the AI Data Cloud. This should support greater customer reliance on Snowflake’s platform and is well-aligned with catalysts related to growth in core financial and analytics use cases, though the ultimate impact still depends on how quickly clients adopt and integrate these solutions.

But investors should also watch for short-term unpredictability in revenue recognition as large customers...

Read the full narrative on Snowflake (it's free!)

Snowflake's narrative projects $7.3 billion revenue and $460.3 million earnings by 2028. This requires 23.6% yearly revenue growth and a $1.86 billion increase in earnings from current earnings of -$1.4 billion.

Uncover how Snowflake's forecasts yield a $231.60 fair value , a 11% upside to its current price.

Exploring Other Perspectives

Fifteen Simply Wall St Community members estimate Snowflake’s fair value between US$118.99 and US$291.54, showing a wide spectrum of outlooks. While new data partnerships may support product adoption, fluctuating contract usage by large customers could mean volatile quarterly performance; consider how your view aligns with this range.

Explore 15 other fair value estimates on Snowflake - why the stock might be worth as much as 40% more than the current price!

Build Your Own Snowflake Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Snowflake research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Snowflake research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Snowflake's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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