Snowflake AI Push With Cortex Code And Partnerships Tests Valuation Discount

• Snowflake (NYSE:SNOW) has introduced Cortex Code, a coding agent designed to help developers build on its data cloud using AI.
• The company has entered high profile partnerships with OpenAI and Anthropic to integrate advanced models into its platform.
• Snowflake is expanding real world AI use cases, including deployments with Wolfspeed in manufacturing and U.S. Figure Skating in sports analytics.

Snowflake sits at the intersection of cloud data infrastructure and applied AI, which places these product launches and partnerships within the core of its business. As more enterprises look to work directly with their data inside existing platforms, tools such as Cortex Code and access to leading AI models can become part of day to day workflows rather than stand alone pilots.

For you as an investor, these developments highlight how Snowflake is working to translate its data cloud into an intelligence platform with practical outcomes, from chip production to athlete performance tracking. Key areas to monitor now include how quickly customers adopt these capabilities, how embedded they become in existing workloads, and what that may indicate about Snowflake's role in enterprise AI budgets over time.

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📰 Beyond the headline: 2 risks and 2 things going right for Snowflake that every investor should see.

Quick Assessment

• ✅ Price vs Analyst Target: At US$176.08 versus a consensus target of about US$274.04, the price sits roughly 36% below where analysts on average see it.
• ✅ Simply Wall St Valuation: Simply Wall St estimates the shares are trading about 21.2% below fair value, suggesting a discount to its modelled worth.
• ❌ Recent Momentum: The 30 day return of about 16.3% decline shows recent share price pressure despite the AI announcements.

There is only one way to know the right time to buy, sell or hold Snowflake. Head to the Simply Wall St company report for the latest analysis of Snowflake's Fair Value..

Key Considerations

• 📊 The Cortex Code launch and partnerships with OpenAI and Anthropic position Snowflake as a platform where customers can run AI directly on their data in the Snowflake environment.
• 📊 Watch how many customers deploy these AI features into production workloads, the share of revenue tied to AI use cases, and the response of the current P/E of about -44.6 relative to the IT industry average P/E of about 22.9.
• ⚠️ Snowflake remains loss making with a net income margin of about 30.8% loss and is flagged as not expected to reach profitability over the next 3 years, which can limit flexibility if AI investments take time to pay off.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Snowflake analysis. Alternatively, you can check out the community page for Snowflake to see how other investors believe this latest news will impact the company's narrative.

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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