Snowflake (SNOW) Stock: Why It Increased Over 7% Today

By Amit Chowdhry ● Jun 23, 2022
  • The stock price of Snowflake Inc. (NYSE: SNOW) increased by over 7% during intraday trading today. This is why.

The stock price of Snowflake Inc. (NYSE: SNOW) increased by over 7% during intraday trading today. Investors are responding positively to a bullish research report.

JPMorgan analyst Mark Murphy upgraded Snowflake from a “Neutral” rating to an “Overweight” rating. And Murphy assigned the company a price target of $165.

“Snowflake, at its core, is a massively scalable, highly elastic, cloud-native data warehouse solution that has begun to disrupt the cloud data management space. Snowflake’s highly differentiated solution has pulled it into a wide variety of use cases from data engineering to data science, and its simplicity and compelling value proposition has led to its adoption ranging from one man operations up to Fortune 10 companies, allowing it to pursue a $67 billion to $87 billion current total addressable market (TAM),” wrote Murphy in a research note. “Additionally, Snowflake’s cloud-agnostic multi-region solution, with intuitive and efficient data sharing capabilities, lays the foundation for a much broader vision of a new category called the Data Cloud, potentially leading to an open-ended market opportunity with strong inherent network effects.”

Going forward, Murphy expects Snowflake to continue to grow revenue at a rapid scale. Plus Murphy noted that Snowflake’s standing surged to elite territory in JPMorgan’s annual CIO Survey for this year. Plus Murphy pointed out that the shares are trading slightly above the $120 IPO offering price from 2020 despite the company’s revenue run-rate as of the latest quarter has grown to about $1.7 billion from about $0.5 billion in the quarter preceding its IPO.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.