Pomerantz LLP Investigates Snowflake for Securities Fraud
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy SNOW?
Source: PRnewswire
- Securities Fraud Investigation: Pomerantz LLP is investigating whether Snowflake and its executives have engaged in securities fraud or other unlawful business practices, which could undermine investor confidence and lead to legal repercussions.
- Earnings Report Impact: On February 28, 2024, Snowflake announced its fourth-quarter and full fiscal year 2024 results, with management noting changes in customer behavior and product-related developments adversely affecting the company's outlook, potentially leading to future performance declines.
- Stock Price Plunge: Following the earnings announcement, Snowflake's stock price fell by $41.72, or 18.14%, closing at $188.28 on February 29, 2024, reflecting market concerns regarding the company's future prospects.
- Legal Consequences: Pomerantz LLP, recognized for its expertise in securities litigation, has secured multimillion-dollar settlements for victims; if the investigation yields negative findings, Snowflake may face significant financial and reputational damage.
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Analyst Views on SNOW
Wall Street analysts forecast SNOW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNOW is 285.29 USD with a low forecast of 237.00 USD and a high forecast of 325.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 165.290
Low
237.00
Averages
285.29
High
325.00
Current: 165.290
Low
237.00
Averages
285.29
High
325.00
About SNOW
Snowflake Inc. is a data cloud and artificial intelligence company. Its platform is the technology that powers the AI Data Cloud, enabling customers to consolidate data into a single source of truth to drive meaningful insights, apply artificial intelligence (AI) to solve business problems, build data applications, and share data and data products. It provides its platform through a customer-centric, and consumption-based business model. Its cloud-native architecture consists of three independently scalable but logically integrated layers across compute, storage, and cloud services. The compute layer provides dedicated resources to enable users to simultaneously access common data sets for many use cases with minimal latency. The storage layer ingests massive amounts and varieties of structured, semi-structured, and unstructured data to create a unified data record. Its ClearQuery platform allows users to rapidly search, explore, and analyze their data using natural language queries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Software Stocks Face AI Threats, Snowflake Grows Against the Tide
- Market Concerns Intensify: Fears regarding AI's threat to software companies have persisted from 2025, leading to significant declines in software stocks at the start of 2023, particularly as the top ten stocks in the S&P 500 have shown marked deterioration relative to the broader market, indicating a decline in investor confidence in the software sector.
- New Collaboration for Snowflake: Snowflake has announced a $200 million deal with OpenAI to integrate its advanced models directly into the Snowflake platform, a move that not only enhances its product competitiveness but also has the potential to drive future revenue growth.
- Strong Financial Performance: Despite the looming AI threat, Snowflake reported a 29% year-over-year increase in product revenue for Q3, with a healthy client retention rate of 125%, showcasing its resilience and ongoing appeal in the market.
- Analysts Optimistic About Future: Goldman Sachs analyst Gabriela Borges has assigned a 'Buy' rating to Snowflake with a price target of $286, suggesting approximately 49% upside potential, reflecting strong market confidence in its future growth prospects.
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- AI Coding Agent Launch: Snowflake has unveiled Cortex Code, an AI coding agent designed specifically for the enterprise data stack, aimed at helping clients like Braze and LendingTree accelerate the transition of data and AI projects from concept to production, significantly enhancing development efficiency.
- Secure Development Environment: Cortex Code CLI provides secure coding assistance for data teams, enabling them to work more efficiently in local development environments while ensuring data governance and security controls are maintained, addressing market demands for high-quality solutions.
- New Feature Integrations: Snowflake has also introduced integrations with Vercel's v0 and Brave Search's agentic web search, enhancing the capabilities for developing AI applications, allowing users to securely build and deploy AI-driven data apps within the Snowflake platform, further promoting enterprise AI adoption.
- Positive Customer Feedback: Clients such as dentsu and WHOOP have reported that Cortex Code has helped them accelerate the shift from experimentation to production without disrupting workflows, enhancing team productivity and data-driven decision-making capabilities, showcasing the immense potential of AI in practical applications.
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Pomerantz LLP Investigates Snowflake for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating whether Snowflake and its executives have engaged in securities fraud or other unlawful business practices, which could undermine investor confidence and lead to legal repercussions.
- Earnings Report Impact: On February 28, 2024, Snowflake announced its fourth-quarter and full fiscal year 2024 results, with management noting changes in customer behavior and product-related developments adversely affecting the company's outlook, potentially leading to future performance declines.
- Stock Price Plunge: Following the earnings announcement, Snowflake's stock price fell by $41.72, or 18.14%, closing at $188.28 on February 29, 2024, reflecting market concerns regarding the company's future prospects.
- Legal Consequences: Pomerantz LLP, recognized for its expertise in securities litigation, has secured multimillion-dollar settlements for victims; if the investigation yields negative findings, Snowflake may face significant financial and reputational damage.
See More
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- Market Panic: Wedbush analyst Dan Ives highlights that the market's reaction to a 'Software Armageddon' scenario is exaggerated, resulting in software stocks dropping between 9% and 19% this week, with projections of a 19% to 29% decline by 2026.
- Investment Recommendations: Ives recommends Microsoft, Palantir, CrowdStrike, Snowflake, and Salesforce as top stocks to invest in, asserting that these companies possess strong resilience in the current market environment.
- Customer Data Security: Ives emphasizes that many customers are reluctant to risk migrating their data to new systems when implementing AI strategies, suggesting that this cautious approach will limit short-term growth potential for software companies.
- Industry Integration Challenges: He notes that many companies have invested heavily in their software systems, making it difficult to abandon existing vendors, and that emerging AI providers like Anthropic and OpenAI are not yet equipped to handle enterprise data transitions effectively.
See More
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- Market Turmoil in Software Stocks: This week, software stocks continued their decline, with the iShares Expanded Tech-Software Sector ETF (IGV) down over 9% week to date, reflecting growing market concerns about the software industry, particularly in the context of a potential unraveling AI bubble.
- Shift in Investor Sentiment: Software stocks have dropped nearly 30% from recent highs, as investors turned against trades perceived as crowded and expensive; despite the IGV surging over 58% in 2023, the current pullback is seen as a buying opportunity by some.
- Uncertain Market Outlook: While some analysts argue that the sell-off in software stocks is overdone and that established players are unlikely to be disrupted by emerging AI technologies, others caution that the current downturn may indicate deeper issues within the industry, especially among highly leveraged hyperscale companies.
- Changing Capital Flows: As funds shift from the Nasdaq to
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- Market Sentiment Recovery: Despite enterprise software stocks like Palantir and Oracle dropping about 12% this week, Nvidia CEO Jensen Huang stated at the Cisco AI Summit that AI will not replace the tool industry but enhance its competitiveness, indicating a potential recovery in market confidence.
- AI-Driven Revenue Growth: Google Cloud's revenue surged 48% year-over-year to $17.7 billion, with CEO Sundar Pichai emphasizing that AI is deeply integrated into customers' critical workflows, showcasing the adaptability and growth potential of software companies in the AI era.
- Emerging Competitor Threats: Investors are concerned that SaaS companies may face competition from emerging AI platforms like Aurasell and Artisan AI, which could undermine the market positions of established firms, increasing uncertainty in the industry.
- Industry Defense Strategies: ServiceNow CEO William McDermott asserted that AI will not replace core enterprise software functions but rather depend on its architecture, indicating that traditional software companies still hold significant strategic positions amid the AI wave.
See More
Software Stocks Face AI Threats, Snowflake Grows Against the Tide
- Market Concerns Intensify: Fears regarding AI's threat to software companies have persisted from 2025, leading to significant declines in software stocks at the start of 2023, particularly as the top ten stocks in the S&P 500 have shown marked deterioration relative to the broader market, indicating a decline in investor confidence in the software sector.
- New Collaboration for Snowflake: Snowflake has announced a $200 million deal with OpenAI to integrate its advanced models directly into the Snowflake platform, a move that not only enhances its product competitiveness but also has the potential to drive future revenue growth.
- Strong Financial Performance: Despite the looming AI threat, Snowflake reported a 29% year-over-year increase in product revenue for Q3, with a healthy client retention rate of 125%, showcasing its resilience and ongoing appeal in the market.
- Analysts Optimistic About Future: Goldman Sachs analyst Gabriela Borges has assigned a 'Buy' rating to Snowflake with a price target of $286, suggesting approximately 49% upside potential, reflecting strong market confidence in its future growth prospects.
See More
Snowflake Launches Cortex Code AI Coding Agent to Accelerate Data Projects
- AI Coding Agent Launch: Snowflake has unveiled Cortex Code, an AI coding agent designed specifically for the enterprise data stack, aimed at helping clients like Braze and LendingTree accelerate the transition of data and AI projects from concept to production, significantly enhancing development efficiency.
- Secure Development Environment: Cortex Code CLI provides secure coding assistance for data teams, enabling them to work more efficiently in local development environments while ensuring data governance and security controls are maintained, addressing market demands for high-quality solutions.
- New Feature Integrations: Snowflake has also introduced integrations with Vercel's v0 and Brave Search's agentic web search, enhancing the capabilities for developing AI applications, allowing users to securely build and deploy AI-driven data apps within the Snowflake platform, further promoting enterprise AI adoption.
- Positive Customer Feedback: Clients such as dentsu and WHOOP have reported that Cortex Code has helped them accelerate the shift from experimentation to production without disrupting workflows, enhancing team productivity and data-driven decision-making capabilities, showcasing the immense potential of AI in practical applications.
See More
Pomerantz LLP Investigates Snowflake for Securities Fraud
- Securities Fraud Investigation: Pomerantz LLP is investigating whether Snowflake and its executives have engaged in securities fraud or other unlawful business practices, which could undermine investor confidence and lead to legal repercussions.
- Earnings Report Impact: On February 28, 2024, Snowflake announced its fourth-quarter and full fiscal year 2024 results, with management noting changes in customer behavior and product-related developments adversely affecting the company's outlook, potentially leading to future performance declines.
- Stock Price Plunge: Following the earnings announcement, Snowflake's stock price fell by $41.72, or 18.14%, closing at $188.28 on February 29, 2024, reflecting market concerns regarding the company's future prospects.
- Legal Consequences: Pomerantz LLP, recognized for its expertise in securities litigation, has secured multimillion-dollar settlements for victims; if the investigation yields negative findings, Snowflake may face significant financial and reputational damage.
See More
Analyst Recommends Investing in Software Sector Winners
- Market Panic: Wedbush analyst Dan Ives highlights that the market's reaction to a 'Software Armageddon' scenario is exaggerated, resulting in software stocks dropping between 9% and 19% this week, with projections of a 19% to 29% decline by 2026.
- Investment Recommendations: Ives recommends Microsoft, Palantir, CrowdStrike, Snowflake, and Salesforce as top stocks to invest in, asserting that these companies possess strong resilience in the current market environment.
- Customer Data Security: Ives emphasizes that many customers are reluctant to risk migrating their data to new systems when implementing AI strategies, suggesting that this cautious approach will limit short-term growth potential for software companies.
- Industry Integration Challenges: He notes that many companies have invested heavily in their software systems, making it difficult to abandon existing vendors, and that emerging AI providers like Anthropic and OpenAI are not yet equipped to handle enterprise data transitions effectively.
See More
Software Stock Sell-Off Raises Market Concerns
- Market Turmoil in Software Stocks: This week, software stocks continued their decline, with the iShares Expanded Tech-Software Sector ETF (IGV) down over 9% week to date, reflecting growing market concerns about the software industry, particularly in the context of a potential unraveling AI bubble.
- Shift in Investor Sentiment: Software stocks have dropped nearly 30% from recent highs, as investors turned against trades perceived as crowded and expensive; despite the IGV surging over 58% in 2023, the current pullback is seen as a buying opportunity by some.
- Uncertain Market Outlook: While some analysts argue that the sell-off in software stocks is overdone and that established players are unlikely to be disrupted by emerging AI technologies, others caution that the current downturn may indicate deeper issues within the industry, especially among highly leveraged hyperscale companies.
- Changing Capital Flows: As funds shift from the Nasdaq to
See More
Big Tech CEOs Address AI Threats to Software Firms
- Market Sentiment Recovery: Despite enterprise software stocks like Palantir and Oracle dropping about 12% this week, Nvidia CEO Jensen Huang stated at the Cisco AI Summit that AI will not replace the tool industry but enhance its competitiveness, indicating a potential recovery in market confidence.
- AI-Driven Revenue Growth: Google Cloud's revenue surged 48% year-over-year to $17.7 billion, with CEO Sundar Pichai emphasizing that AI is deeply integrated into customers' critical workflows, showcasing the adaptability and growth potential of software companies in the AI era.
- Emerging Competitor Threats: Investors are concerned that SaaS companies may face competition from emerging AI platforms like Aurasell and Artisan AI, which could undermine the market positions of established firms, increasing uncertainty in the industry.
- Industry Defense Strategies: ServiceNow CEO William McDermott asserted that AI will not replace core enterprise software functions but rather depend on its architecture, indicating that traditional software companies still hold significant strategic positions amid the AI wave.
See More
