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MENLO PARK - Snowflake (NYSE:SNOW), whose stock has surged nearly 99% over the past year and currently commands a market capitalization of $75.6 billion, unveiled its "Snowflake for Startups" program on Wednesday at the opening of its Silicon Valley AI Hub, aiming to help founders build enterprise-grade AI applications on the company’s data cloud platform. According to InvestingPro data, the company’s strong market performance reflects growing investor confidence, though current valuations suggest the stock may be trading above its Fair Value.
The initiative, which evolves from the company’s previous "Powered by Snowflake" program, provides startups with access to managed AI infrastructure, venture capital connections, and coworking opportunities at its new Menlo Park facility. InvestingPro analysis shows 37 analysts have revised their earnings upwards for the upcoming period, with analyst targets ranging from $170 to $440 per share, suggesting strong growth potential.
According to the company, the program offers self-service access to the same enterprise-grade AI infrastructure that powers Snowflake’s own products, allowing startups to use various frontier models within Snowflake’s security framework.
"Snowflake for Startups represents our unified commitment to empowering the next generation of builders," said Stefan Williams, VP of Corporate Development at Snowflake, in a press release statement.
The company has expanded its relationships with venture capital firms including Altimeter, Coatue, Greylock Partners, and others, providing these firms’ portfolio companies with free Snowflake usage credits and technical expertise.
The program includes access to Snowflake’s marketplace of over 12,000 potential customers, an accelerator program that has helped launch 28 products, and investment opportunities through Snowflake Ventures, which the company says is on track to increase its investment pace by over 30% this year.
Snowflake’s Silicon Valley AI Hub will offer dedicated coworking and event spaces for startups, with the first cohort of over a dozen startups expected to begin using the space next month.
The company serves approximately 12,000 customers globally, according to the press release, and has maintained impressive revenue growth of 28.4% over the last twelve months. For deeper insights into Snowflake’s financial health and growth prospects, including 8 additional exclusive ProTips and comprehensive valuation metrics, investors can access the full analysis through InvestingPro’s detailed research report, part of its coverage of over 1,400 US equities.
In other recent news, Snowflake reported impressive second-quarter results, with product revenue reaching $1,090 million, marking a 32% year-over-year growth. This figure exceeded consensus estimates by $47 million, showcasing the company’s robust performance. Additionally, Snowflake’s remaining performance obligations rose to $6,932 million, reflecting a 33% increase, and its net revenue retention improved to 125%. In related developments, Snowflake announced the retirement of its CFO, Mike Scarpelli, effective September 22, and appointed Brian Robins, formerly of GitLab, as his successor to oversee the company’s financial strategies.
Meanwhile, Snowflake has launched the Open Semantic Interchange initiative in collaboration with partners like Salesforce and BlackRock to standardize data definitions across platforms. Analyst firms have responded positively to Snowflake’s performance, with Macquarie raising its price target to $235, maintaining a Neutral rating, and Piper Sandler increasing its target to $285, citing strong AI-driven growth. This series of developments underscores Snowflake’s strategic efforts in both financial leadership and technological innovation.
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