Snowflake Q1: Can the AI Makeover Turn Cloud Data Giant Into Growth Story Again?

Snowflake’s (NYSE:SNOW) platform strength is demonstrated through its high customer retention rates and ongoing innovation, including the addition of around 400 new product capabilities in the past year. Additionally, their expanding ecosystem of partners and marketplace offerings further enhances their competitive edge in the cloud data industry.

Microsoft (NASDAQ:MSFT) CEO Satya Nadella has spoken positively about Snowflake growth on Azure, highlighting expanding partnership.

Key Highlights:

• AI and ML integration offers substantial growth opportunities for Snowflake, as it is well-positioned to capitalize on the increasing demand for powerful data platforms capable of supporting AI workloads. This alignment allows Snowflake to enhance its value proposition by enabling more sophisticated analytics and AI-driven insights for its customers.
• Strategic partnerships with companies like Anthropic and integrations with OpenAI bolster Snowflake’s position in the AI-driven data analytics market. These collaborations enhance Snowflake’s capabilities in AI and machine learning, providing advanced tools and solutions that meet the evolving needs of its customers, thereby reinforcing its competitive advantage.
• New product innovations such as Snowpark, Cortex, and Snowflake Intelligence have the potential to drive expansion into adjacent markets.
• As Snowflake continues to scale, maintaining high growth rates becomes more challenging due to the law of large numbers, which makes sustaining percentage growth on a growing revenue base more difficult. Additionally, increasing competition from established cloud providers and emerging players like Databricks may put pressure on Snowflake’s market share and pricing power, potentially impacting its growth trajectory.

SNOW Q1 earnings after market Wednesday May 21, 2025

Financial Health History

Financial Health for Meta (NASDAQ:META) Platform is determined by ranking the company on over 100 factors against companies in the Information Technology sector and operating in Developing economic markets.

Technical Analysis Perspective:

• SNOW has been squeezing between two long-term trendlines, a falling one from February ’24 237 high, cementing 237/234 level as a robust barrier since then.
• A rising trendline from September ’24 low at 107/108 level, confirming a firm base around those levels.
• A second attempt higher was intercepted by the falling trendline at 194/193 in February ‘25.
• A rejection of 194/193 triggered a decline to 120 base in April ’25, which pushed the prices higher confirming the significance of the rising trendline.
• SNOW is hovering near February ’24 falling trendline between 185/186, again rejection post earnings would pave the way for a decline to 122/124 the rising trendline from September ’24 107/108 support.
• A strong and sustained breakout would extend the current rally to 230 -237 region.
• Ideally, prices should continue trading between those falling and rising trendlines.
• It all depends on earnings and guidance.

Weekly Candlestick Chart

SNOW Seasonality Chart:

• SNOW closes -1.7 % lower in May 60% of the time since 2020.

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Ali Merchant is a seasoned financial market professional with expertise in Technical Analysis, Treasury & Capital Markets, Trading, Sales, Research, Training, Fund & Relationship Management, Fintech, and Digitalization. He is a CMT charter holder and an active member of CMT Association, USA, American Association of Professional Technical Analysts, and CMT Association of Canada. He has worked on various roles and organizations in North America and the GCC, such as ABN Amro bank, Thomson Reuters, Refinitiv, MAK Allen & Day Capital Partners (WA:CPAP), and Bridge Information Systems.

He is the founder of TwT Learnings, provides financial market training.