Snowflake Shares Soar After Strong Earnings Report: Attention on ETFs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 28 2025
0mins
Should l Buy SNOW?
Source: NASDAQ.COM
Earnings Report Highlights: Snowflake's shares rose 13% after reporting second-quarter fiscal 2026 earnings of 35 cents per share, exceeding Wall Street expectations and nearly doubling the previous year's figure.
Revenue Growth: The company reported a 32% increase in revenues to $1.1 billion, surpassing the consensus estimate of $1.09 billion, with remaining performance obligations reaching $6.9 billion, up 33% year-over-year.
Increased Revenue Forecast: Snowflake raised its product revenue forecast for fiscal 2026 to $4.40 billion, driven by strong demand for data analytics services amid rising enterprise investments in artificial intelligence.
ETFs Exposure: Several exchange-traded funds (ETFs) like Twin Oak Endure ETF, TrueShares Technology, AI & Deep Learning ETF, and Global X Cloud Computing ETF have significant exposure to Snowflake and may benefit from its growth in the AI sector.
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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: 134.240
Low
237.00
Averages
278.19
High
312.00
Current: 134.240
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.
Reminder of Class Action Lawsuit for Snowflake Inc.
- Class Action Notice: Rosen Law Firm reminds investors who purchased Snowflake Inc. (NYSE:SNOW) Class A common stock between June 27, 2023, and February 28, 2024, to apply as lead plaintiffs by April 27, 2026, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that Snowflake made positive business statements during the class period while failing to disclose that product efficiency gains and pricing strategies would materially negatively impact consumption and revenues, resulting in investor losses when the truth emerged.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first in 2017 for the number of securities class action settlements, demonstrating its expertise and successful track record in this field.
- How to Participate: Investors can visit Rosen Law Firm's website or call toll-free at 866-767-3653 for more information, ensuring they select qualified legal counsel to represent them in the lawsuit and avoid inexperienced intermediaries.
See More
Notice to Snowflake Inc. Shareholders Regarding Class Action Lawsuit
- Lawsuit Background: The Gross Law Firm has issued a notice encouraging shareholders who purchased Snowflake Inc. (NYSE:SNOW) shares between June 27, 2023, and February 28, 2024, to contact them regarding potential lead plaintiff status, indicating significant legal risks for the company.
- Allegations Details: The complaint alleges that during the class period, defendants made materially false and/or misleading statements and failed to disclose that product efficiency gains, including Iceberg Tables and tiered storage pricing, were expected to negatively impact consumption and revenues, leading to investor misjudgment about the company's prospects.
- Participation Requirements: Shareholders must register by April 27, 2026, to participate in the class action lawsuit, and upon registration, they will be enrolled in a portfolio monitoring software to receive status updates, ensuring timely information on the case's progress.
- Law Firm's Strengths: The Gross Law Firm is a nationally recognized class action law firm committed to protecting investor rights and ensuring companies adhere to responsible business practices, emphasizing their expertise and dedication to safeguarding investor interests.
See More
Reminder of Class Action Lawsuit for Snowflake Inc. Investors
- Class Action Notice: Rosen Law Firm reminds investors who purchased Snowflake Inc. (NYSE: SNOW) Class A common stock between June 27, 2023, and February 28, 2024, to apply as lead plaintiffs by April 27, 2026, to participate in the class action and seek compensation.
- Lawsuit Background: The lawsuit alleges that Snowflake made positive statements during the class period while failing to disclose that product efficiency gains and pricing strategies would materially negatively impact consumption and revenues, resulting in investor losses once the truth emerged.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first by ISS Securities Class Action Services in 2017, showcasing its strong capabilities in this field.
- Participation Instructions: Investors can visit the Rosen Law Firm website or call the toll-free number for more information, participating in the class action without any upfront costs, ensuring their rights are protected.
See More
Snowflake Faces Investor Lawsuit Over Risk Disclosures
- Lawsuit Background: Levi & Korsinsky, LLP is examining the adequacy of Snowflake Inc.'s risk disclosures from June 27, 2023, to February 28, 2024, as investors file a class action lawsuit due to inadequate disclosures, highlighting significant concerns over the company's transparency.
- Stock Price Decline: Following the disclosure of known consumption headwinds, Snowflake's shares fell by $41.72 (18.14%), indicating a severe blow to investor confidence in the company's future revenue, which could adversely affect its market performance and financing capabilities.
- Disclosure Omissions: The lawsuit alleges that Snowflake's public statements failed to disclose specific known adverse facts, such as efficiency gains reducing customer payments per workload, projected to create a 6.2% to 6.3% revenue headwind for the upcoming fiscal year, potentially leading to investor misjudgment regarding the company's financial health.
- Legal Risks: Under federal securities laws, generic risk factor language cannot substitute for disclosing specific known issues already affecting operations; if company executives are aware of customer plans and monitor consumption trends, investors are entitled to clearer information, which may expose the company to greater legal liabilities.
See More
Faruqi & Faruqi Investigates Snowflake Securities Litigation
- Legal Investigation Initiated: Faruq & Faruqi LLP is investigating potential securities litigation against Snowflake Inc., particularly for investors who purchased securities between June 27, 2023, and February 28, 2024, urging them to contact the firm before the April 27, 2026 deadline to seek lead plaintiff status.
- Financial Results Disclosure: On February 28, 2024, Snowflake disclosed its financial results for the quarter ending January 31, 2024, indicating expected revenue headwinds due to product efficiency gains and tiered storage pricing, leading to an 18.14% stock price drop from $230 to $188.28 the following day.
- Executive Change Impact: On the same day, Snowflake announced the retirement of CEO Frank Slootman effective February 27, 2024, which may exacerbate market concerns regarding the company's future performance and impact investor confidence.
- Investor Rights Protection: Faruq & Faruqi LLP encourages anyone with information about Snowflake's conduct, including whistleblowers and former employees, to come forward to support the ongoing class action lawsuit, ensuring the protection of investors' legal rights.
See More
Analysis of Palantir and Snowflake Earnings Reports
- Palantir Revenue Surge: Palantir reported fourth-quarter 2025 revenue of approximately $1.41 billion, reflecting a 70% year-over-year increase, with its U.S. commercial segment skyrocketing by 137%, indicating strong momentum in the AI sector, yet its price-to-earnings ratio exceeding 200 suggests market expectations may be overly optimistic.
- Snowflake's Profitability Issues: Snowflake's latest earnings report showed product revenue of $1.23 billion, up 30% year-over-year, but it still faced an annual operating loss of about $1.44 billion, primarily due to high stock-based compensation, raising concerns that market expectations for future profitability may be overly ambitious.
- Amazon Cloud Growth: Amazon's fourth-quarter net sales for 2025 rose 14% year-over-year to $213.4 billion, with its cloud segment AWS seeing a 24% revenue increase to $35.6 billion, showcasing its robust capacity for AI infrastructure investment, despite a significant drop in free cash flow to $11.2 billion.
- Market Sentiment Volatility: Despite the impressive revenue growth of Palantir and Snowflake, many software stocks have faced sharp declines amid shifting market sentiment, prompting investors to carefully assess current buying opportunities, particularly against the backdrop of high valuations in the AI sector.
See More
Reminder of Class Action Lawsuit for Snowflake Inc.
- Class Action Notice: Rosen Law Firm reminds investors who purchased Snowflake Inc. (NYSE:SNOW) Class A common stock between June 27, 2023, and February 28, 2024, to apply as lead plaintiffs by April 27, 2026, to potentially receive compensation without any out-of-pocket costs.
- Lawsuit Background: The lawsuit alleges that Snowflake made positive business statements during the class period while failing to disclose that product efficiency gains and pricing strategies would materially negatively impact consumption and revenues, resulting in investor losses when the truth emerged.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first in 2017 for the number of securities class action settlements, demonstrating its expertise and successful track record in this field.
- How to Participate: Investors can visit Rosen Law Firm's website or call toll-free at 866-767-3653 for more information, ensuring they select qualified legal counsel to represent them in the lawsuit and avoid inexperienced intermediaries.
See More
Notice to Snowflake Inc. Shareholders Regarding Class Action Lawsuit
- Lawsuit Background: The Gross Law Firm has issued a notice encouraging shareholders who purchased Snowflake Inc. (NYSE:SNOW) shares between June 27, 2023, and February 28, 2024, to contact them regarding potential lead plaintiff status, indicating significant legal risks for the company.
- Allegations Details: The complaint alleges that during the class period, defendants made materially false and/or misleading statements and failed to disclose that product efficiency gains, including Iceberg Tables and tiered storage pricing, were expected to negatively impact consumption and revenues, leading to investor misjudgment about the company's prospects.
- Participation Requirements: Shareholders must register by April 27, 2026, to participate in the class action lawsuit, and upon registration, they will be enrolled in a portfolio monitoring software to receive status updates, ensuring timely information on the case's progress.
- Law Firm's Strengths: The Gross Law Firm is a nationally recognized class action law firm committed to protecting investor rights and ensuring companies adhere to responsible business practices, emphasizing their expertise and dedication to safeguarding investor interests.
See More
Reminder of Class Action Lawsuit for Snowflake Inc. Investors
- Class Action Notice: Rosen Law Firm reminds investors who purchased Snowflake Inc. (NYSE: SNOW) Class A common stock between June 27, 2023, and February 28, 2024, to apply as lead plaintiffs by April 27, 2026, to participate in the class action and seek compensation.
- Lawsuit Background: The lawsuit alleges that Snowflake made positive statements during the class period while failing to disclose that product efficiency gains and pricing strategies would materially negatively impact consumption and revenues, resulting in investor losses once the truth emerged.
- Law Firm Credentials: Rosen Law Firm specializes in securities class actions and has recovered over $438 million for investors in 2019 alone, being ranked first by ISS Securities Class Action Services in 2017, showcasing its strong capabilities in this field.
- Participation Instructions: Investors can visit the Rosen Law Firm website or call the toll-free number for more information, participating in the class action without any upfront costs, ensuring their rights are protected.
See More
Snowflake Faces Investor Lawsuit Over Risk Disclosures
- Lawsuit Background: Levi & Korsinsky, LLP is examining the adequacy of Snowflake Inc.'s risk disclosures from June 27, 2023, to February 28, 2024, as investors file a class action lawsuit due to inadequate disclosures, highlighting significant concerns over the company's transparency.
- Stock Price Decline: Following the disclosure of known consumption headwinds, Snowflake's shares fell by $41.72 (18.14%), indicating a severe blow to investor confidence in the company's future revenue, which could adversely affect its market performance and financing capabilities.
- Disclosure Omissions: The lawsuit alleges that Snowflake's public statements failed to disclose specific known adverse facts, such as efficiency gains reducing customer payments per workload, projected to create a 6.2% to 6.3% revenue headwind for the upcoming fiscal year, potentially leading to investor misjudgment regarding the company's financial health.
- Legal Risks: Under federal securities laws, generic risk factor language cannot substitute for disclosing specific known issues already affecting operations; if company executives are aware of customer plans and monitor consumption trends, investors are entitled to clearer information, which may expose the company to greater legal liabilities.
See More
Faruqi & Faruqi Investigates Snowflake Securities Litigation
- Legal Investigation Initiated: Faruq & Faruqi LLP is investigating potential securities litigation against Snowflake Inc., particularly for investors who purchased securities between June 27, 2023, and February 28, 2024, urging them to contact the firm before the April 27, 2026 deadline to seek lead plaintiff status.
- Financial Results Disclosure: On February 28, 2024, Snowflake disclosed its financial results for the quarter ending January 31, 2024, indicating expected revenue headwinds due to product efficiency gains and tiered storage pricing, leading to an 18.14% stock price drop from $230 to $188.28 the following day.
- Executive Change Impact: On the same day, Snowflake announced the retirement of CEO Frank Slootman effective February 27, 2024, which may exacerbate market concerns regarding the company's future performance and impact investor confidence.
- Investor Rights Protection: Faruq & Faruqi LLP encourages anyone with information about Snowflake's conduct, including whistleblowers and former employees, to come forward to support the ongoing class action lawsuit, ensuring the protection of investors' legal rights.
See More
Analysis of Palantir and Snowflake Earnings Reports
- Palantir Revenue Surge: Palantir reported fourth-quarter 2025 revenue of approximately $1.41 billion, reflecting a 70% year-over-year increase, with its U.S. commercial segment skyrocketing by 137%, indicating strong momentum in the AI sector, yet its price-to-earnings ratio exceeding 200 suggests market expectations may be overly optimistic.
- Snowflake's Profitability Issues: Snowflake's latest earnings report showed product revenue of $1.23 billion, up 30% year-over-year, but it still faced an annual operating loss of about $1.44 billion, primarily due to high stock-based compensation, raising concerns that market expectations for future profitability may be overly ambitious.
- Amazon Cloud Growth: Amazon's fourth-quarter net sales for 2025 rose 14% year-over-year to $213.4 billion, with its cloud segment AWS seeing a 24% revenue increase to $35.6 billion, showcasing its robust capacity for AI infrastructure investment, despite a significant drop in free cash flow to $11.2 billion.
- Market Sentiment Volatility: Despite the impressive revenue growth of Palantir and Snowflake, many software stocks have faced sharp declines amid shifting market sentiment, prompting investors to carefully assess current buying opportunities, particularly against the backdrop of high valuations in the AI sector.
See More
