SoFi stock falls after announcing $1.5B public offering of common stock
Investing.com - Goldman Sachs has raised its price target on Snowflake Inc. (NYSE:SNOW) to $275 from its previous target while maintaining a Buy rating following the company’s third-quarter results. The new target aligns with Snowflake’s current trading price of $265, which sits just 5.6% below its 52-week high of $280.67. InvestingPro data shows the stock has delivered an impressive 71.6% return year-to-date and appears overvalued based on its Fair Value assessment.
Snowflake reported product revenue growth of 29%, which was 2.3% above consensus estimates but showed deceleration from the previous quarter’s 31.5% growth. The company maintained its net expansion rate at 125% and delivered operating income 19% above consensus, though free cash flow came in 55% below expectations. This growth pattern aligns with the company’s 28.4% revenue growth over the last twelve months, reaching $4.12 billion, despite Snowflake not being profitable during this period with a negative $4.15 diluted EPS.
For the fourth quarter, Snowflake guided product revenue 1.1% above consensus, projecting 27% growth, while slightly lowering its operating margin outlook to 7% versus the 8.4% consensus estimate. The stock fell approximately 8% in after-hours trading despite these results. Looking ahead, InvestingPro data reveals analysts expect Snowflake to become profitable this fiscal year with an EPS forecast of $1.29. For investors seeking deeper insights into Snowflake’s valuation and growth prospects, a comprehensive Pro Research Report is available among the 1,400+ US equities covered by InvestingPro.
Goldman Sachs highlighted Snowflake’s artificial intelligence momentum as a key growth driver, noting that Snowflake Intelligence is experiencing its fastest new product adoption with over 1,200 customers. The company achieved $100 million in run-rate AI revenue one quarter earlier than anticipated, with 50% of bookings being AI-influenced.
The investment bank remains optimistic about Snowflake’s growth trajectory, citing record third-quarter net-new remaining performance obligations of $949 million, strong new customer additions of 615, and increasing AI adoption with 58% of customers using AI weekly.
In other recent news, Snowflake Inc . reported its third-quarter 2025 earnings, significantly surpassing analysts’ expectations. The company achieved earnings per share of $0.39, which was 25.81% higher than the forecasted $0.31. Revenue for the quarter reached $1.21 billion, slightly exceeding the projected $1.18 billion, resulting in a 2.54% surprise. RBC Capital reiterated its Outperform rating on Snowflake, maintaining a price target of $300. This decision followed what RBC described as a "beat-and-raise quarter," where a slight deceleration in product revenue was counterbalanced by an acceleration in revenue performance obligation. These developments reflect positively on Snowflake’s strategic direction and financial health.
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