In the midst of the AI bull run, various sympathy plays have emerged — primarily in the tech sector. Data cloud business Snowflake (NYSE: SNOW) is in such a position, but SNOW shares have lagged behind the wider market throughout most of 2024.
Most notably, renowned billionaire investor Warren Buffett completely divested his stake in Q2 2024 — in spite of the fact that the average price target at the time saw a 50% upside for the stock.
SNOW stock hasn’t managed to recoup all of its losses — yet. Snowflake shares’ last closing price was $150.79 at the time of writing — a 16.74% uptick was seen in the day’s closing hours up from $129.16.
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At press time, SNOW shares had reached prices as high as $166.58 extending the rally to 24.76% and weekly gains to 31.91%. On a year-to-date (YTD) basis, the stock is still in the red — with losses of 11.42%.
So, what was behind this sudden surge? On November 20, the data infrastructure company released its Q3 2025 earnings report — which saw a beat both in terms of earnings and revenue.
SNOW stock rallies on strong quarterly results
For the quarter ended October 31, Snowflake reported earnings per share (EPS) of $0.20 — significantly outpacing consensus analyst estimates of $0.15. The earnings call also saw an outperformance in terms of revenue, which came in at $942 million — significantly better than the expected $897 million, equating to a growth of 28% year-over-year (YoY).
Net losses were reported at $327.9 million — slightly below expectations of $392.5 million. However, it seems that management is optimistic, as guidance was raised to $3.43 billion in revenue for the full fiscal year.
Readers should also keep in mind that the company had $400 million in one-time expenses this quarter — primarily driven by stock-based compensation and restructuring costs.
In tandem with all of this, Snowflake also announced the acquisition of data integration startup Datavolo, as well as a strategic partnership with AI company Anthropic. The partnership, which will see Anthropic’s Claude models deployed directly into Snowflake’s data cloud could prove to be a bullish catalyst for the business.
Snowflake stock price has almost reached some of the most bullish analyst price targets set thus far — with the promising quarterly results and this latest surge, it’s almost certain that major Wall Street firms will revise their price forecasts upward moving forward.
Featured image via Shutterstock
