SoFi stock falls after announcing $1.5B public offering of common stock
Investing.com - Stifel raised its price target on Snowflake Inc. (NYSE:SNOW) to $280.00 from $260.00 while maintaining a Buy rating, following the company’s third-quarter earnings report. The new target approaches Snowflake’s 52-week high of $280.67, with the stock currently trading at $265 after posting an impressive 71.62% gain year-to-date.
The cloud data platform’s stock fell approximately 7% after its earnings announcement, despite delivering what Stifel characterized as a "solid" quarter with product revenue exceeding expectations by 3%, which aligned with historical performance patterns. According to InvestingPro data, Snowflake is currently not profitable over the last twelve months, though analysts predict the company will be profitable this fiscal year.
Snowflake demonstrated robust new business activity, signing four nine-figure transactions that helped drive a 37% increase in remaining performance obligations (RPO). The company also reported that AI-centric consumption revenue has now surpassed $100 million. This growth complements Snowflake’s overall revenue growth of 28.37% over the last twelve months.
Management committed to sustained margin improvement in upcoming quarters as recent investments become more productive, following a modest quarter-over-quarter decline in operating margins due to first-half investments impacting operating expenses. Snowflake operates with a moderate level of debt, with a debt-to-equity ratio of 1.13.
Stifel expressed confidence that Snowflake should be able to guide for mid-20% product revenue growth for fiscal year 2027, citing strong bookings and healthy net revenue retention of 125%. InvestingPro analysis suggests Snowflake is currently overvalued based on its Fair Value assessment, with the stock trading at a high Price/Book multiple of 37.84. Investors seeking deeper insights can access Snowflake’s comprehensive Pro Research Report, available among 1,400+ top stocks covered on InvestingPro.
In other recent news, Snowflake Inc . reported its third-quarter 2025 earnings, surpassing analysts’ expectations with earnings per share of $0.39, which was a 25.81% increase over the forecasted $0.31. The company also reported revenue of $1.21 billion, slightly exceeding the projected $1.18 billion, resulting in a 2.54% surprise. RBC Capital reiterated its Outperform rating with a $300 price target, highlighting a "beat-and-raise quarter" despite a slight deceleration in product revenue. Goldman Sachs increased its price target to $275, noting a 29% growth in product revenue, which was above consensus estimates. However, Goldman Sachs also pointed out that free cash flow was 55% below expectations. Raymond James raised its price target to $274, describing Snowflake’s performance as a "modest beat" with a "mixed outlook." KeyBanc also raised its price target to $285, citing a "solid" third-quarter product revenue beat, though slightly below expectations. These recent developments reflect various analyst perspectives on Snowflake’s financial performance and future potential.
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