Rosen Law Firm Files Class Action Against Snowflake Inc.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SNOW?
Source: Businesswire
- Lawsuit Background: Rosen Law Firm has initiated a class action lawsuit on behalf of investors who purchased Class A common stock of Snowflake Inc. (NYSE: SNOW) between June 27, 2023, and February 28, 2024, alleging that the company misled investors regarding its business operations, resulting in investor losses.
- Allegations Details: The lawsuit claims that during the class period, Snowflake made repeated positive statements about customer usage and product developments while failing to disclose that efficiency gains and pricing strategies were expected to negatively impact consumption and revenues, rendering their positive statements baseless.
- Investor Losses: As the true details emerged, investors suffered damages, and the lawsuit seeks compensation for affected shareholders, highlighting potential misconduct in the company's information disclosure practices.
- Next Steps: Shareholders wishing to serve as lead plaintiffs in the class action must file motions with the court by April 27, 2026, emphasizing the importance of corporate governance and transparency to protect shareholder rights.
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Analyst Views on SNOW
Wall Street analysts forecast SNOW stock price to rise
33 Analyst Rating
30 Buy
3 Hold
0 Sell
Strong Buy
Current: 161.060
Low
237.00
Averages
278.19
High
312.00
Current: 161.060
Low
237.00
Averages
278.19
High
312.00
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.
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- Margin Improvement: Non-GAAP product gross margin stands at 75%, with non-GAAP operating income margin at 9%, reflecting effective strategies in cost control and profitability enhancement, which boosts investor confidence.
- Cash Flow Performance: Non-GAAP adjusted free cash flow grew by 23%, demonstrating ongoing improvements in financial management and operational efficiency, providing a solid foundation for future investments and expansion.
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- Lawsuit Background: Robbins LLP has filed a class action on behalf of investors who purchased Snowflake Inc. (NYSE: SNOW) Class A common stock between June 27, 2023, and February 28, 2024, alleging that the company misled investors regarding its business prospects, resulting in shareholder losses.
- Financial Disclosure Impact: On February 28, 2024, Snowflake disclosed financial results indicating that product efficiency gains and tiered storage pricing would negatively impact revenues, causing the stock price to plummet from $230 to $188.28, a decline of 18.14%, reflecting market disappointment in the company's outlook.
- Investor Reaction: Following the earnings release, Snowflake executives acknowledged anticipated revenue headwinds, severely undermining investor confidence and potentially prompting more shareholders to join the lawsuit seeking compensation.
- Legal Consequences: Robbins LLP encourages affected shareholders to participate in the class action, with the lead plaintiff representing the group in directing the litigation, highlighting potential governance issues and the impact on investor trust.
See More
Rosen Law Firm Files Class Action Against Snowflake Inc.
- Lawsuit Background: Rosen Law Firm has initiated a class action lawsuit on behalf of investors who purchased Class A common stock of Snowflake Inc. (NYSE: SNOW) between June 27, 2023, and February 28, 2024, alleging that the company misled investors regarding its business operations, resulting in investor losses.
- Allegations Details: The lawsuit claims that during the class period, Snowflake made repeated positive statements about customer usage and product developments while failing to disclose that efficiency gains and pricing strategies were expected to negatively impact consumption and revenues, rendering their positive statements baseless.
- Investor Losses: As the true details emerged, investors suffered damages, and the lawsuit seeks compensation for affected shareholders, highlighting potential misconduct in the company's information disclosure practices.
- Next Steps: Shareholders wishing to serve as lead plaintiffs in the class action must file motions with the court by April 27, 2026, emphasizing the importance of corporate governance and transparency to protect shareholder rights.
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- Strong Earnings Report: Snowflake's Q4 non-GAAP EPS of $0.32 exceeded expectations by $0.05, with revenue reaching $1.28 billion, reflecting a robust year-over-year growth of 29.7%, indicating strong momentum in the data cloud market.
- Product Revenue Growth: The guidance for Q1 Fiscal 2027 projects product revenue between $1.262 billion and $1.267 billion, representing a 27% year-over-year increase, showcasing the company's success in attracting customers and expanding market share.
- Margin Improvement: Non-GAAP product gross margin stands at 75%, with non-GAAP operating income margin at 9%, reflecting effective strategies in cost control and profitability enhancement, which boosts investor confidence.
- Cash Flow Performance: Non-GAAP adjusted free cash flow grew by 23%, demonstrating ongoing improvements in financial management and operational efficiency, providing a solid foundation for future investments and expansion.
See More
Surge in Options Trading Volume for Mitek and Photronics
- Mitek Options Volume: Mitek Systems, Inc. experienced options trading volume of 9,219 contracts, equating to approximately 921,900 shares, which is about 101.3% of its average daily trading volume over the past month, indicating strong market interest in its future performance.
- High Strike Demand: Notably, the $12.50 strike call option expiring on March 20, 2026, saw a trading volume of 3,759 contracts today, representing around 375,900 shares, suggesting a significant bullish sentiment among investors regarding Mitek.
- Photronics Options Activity: Photronics, Inc. recorded an options trading volume of 9,035 contracts, approximately 903,500 shares, which is about 86% of its average daily trading volume over the past month, reflecting ongoing market interest in its stock.
- Strike Price Focus: The $40 strike call option expiring on March 20, 2026, particularly stood out with a trading volume of 2,381 contracts today, representing about 238,100 shares, indicating investor confidence in Photronics' future growth.
See More
Market Rebounds as Salesforce and Amazon Draw Attention
- Software Stocks Rebound: Following Monday's market panic, Workday rebounded over 2% after a 9% premarket decline, indicating that the software selloff may have been overdone, leading to a more optimistic outlook among investors.
- Salesforce Recovery: Salesforce shares rose 3% on Wednesday after a 4% increase on Tuesday, breaking a prior three-day losing streak, with the market eagerly awaiting its upcoming earnings report for further insights into the software sector.
- Amazon AWS Expansion Plan: Bank of America analysts reiterated their buy rating on Amazon, forecasting that AWS capacity will increase from 15 gigawatts to over 31 gigawatts by 2027, with projected revenues of $164 billion this year and $209 billion in 2027, both exceeding market expectations.
- Boeing Faces Challenges: While banks and credit card stocks rebounded after Trump did not mention a credit card interest rate cap, aerospace and defense stocks like Boeing fell due to missing out on a potential order for 120 jets from China, leaving the market with lingering expectations for future orders.
See More
Snowflake Accused of Misleading Investors in Class Action
- Lawsuit Background: Robbins LLP has filed a class action on behalf of investors who purchased Snowflake Inc. (NYSE: SNOW) Class A common stock between June 27, 2023, and February 28, 2024, alleging that the company misled investors regarding its business prospects, resulting in shareholder losses.
- Financial Disclosure Impact: On February 28, 2024, Snowflake disclosed financial results indicating that product efficiency gains and tiered storage pricing would negatively impact revenues, causing the stock price to plummet from $230 to $188.28, a decline of 18.14%, reflecting market disappointment in the company's outlook.
- Investor Reaction: Following the earnings release, Snowflake executives acknowledged anticipated revenue headwinds, severely undermining investor confidence and potentially prompting more shareholders to join the lawsuit seeking compensation.
- Legal Consequences: Robbins LLP encourages affected shareholders to participate in the class action, with the lead plaintiff representing the group in directing the litigation, highlighting potential governance issues and the impact on investor trust.
See More
Rosen Law Firm Files Class Action Against Snowflake Inc.
- Lawsuit Background: Rosen Law Firm has initiated a class action lawsuit on behalf of investors who purchased Class A common stock of Snowflake Inc. (NYSE: SNOW) between June 27, 2023, and February 28, 2024, alleging that the company misled investors regarding its business operations, resulting in investor losses.
- Allegations Details: The lawsuit claims that during the class period, Snowflake made repeated positive statements about customer usage and product developments while failing to disclose that efficiency gains and pricing strategies were expected to negatively impact consumption and revenues, rendering their positive statements baseless.
- Investor Losses: As the true details emerged, investors suffered damages, and the lawsuit seeks compensation for affected shareholders, highlighting potential misconduct in the company's information disclosure practices.
- Next Steps: Shareholders wishing to serve as lead plaintiffs in the class action must file motions with the court by April 27, 2026, emphasizing the importance of corporate governance and transparency to protect shareholder rights.
See More
Anthropic Launches New Tool to Support Software Industry
- Product Update: Anthropic's Tuesday event introduced updates to its Claude Cowork tool, enabling connections to platforms like Google Drive, Gmail, and Docusign, thereby enhancing office productivity and demonstrating its additive role to existing software providers.
- Market Reaction: The iShares Expanded Tech-Software Sector ETF (IGV) rose nearly 2% during Tuesday's session, recovering from a more than 4% drop on Monday, although the fund remains down 24% in 2026, reflecting the market's mixed sentiment towards AI's impact.
- Industry Analysis: Wells Fargo analyst Jason Haas highlighted that sector-specific data assets are crucial in building AI solutions, with companies like Fair Isaac, Moody's, and S&P Global likely to benefit due to their unique datasets, indicating AI as a tailwind for increased data usage.
- Collaboration Outlook: Analysts suggest that Anthropic's event indicates a willingness to partner with existing software companies rather than replace them, a collaboration model that may be underappreciated by investors, particularly in the information services sector, which could lead to more market opportunities ahead.
See More
