Snowflake Stock Is on Fire—It’s Still Not Too Late to Buy
With the proliferation of artificial intelligence (AI) and the data storage it requires, numerous industries are emerging as pick-and-shovel plays by providing essential ancillary services for the emerging technology. Those span industries from data centers and utility companies to electric infrastructure and cloud storage.
That last one—cloud storage—is critical to AI’s exponential growth. According to industry consultancy firm Grand View Research, the cloud computing market is forecast to grow at a compound annual growth rate (CAGR) of 20.4% from 2025 through 2030. Much of that has to do with AI's processing power and storage requirements.
Beyond AI, companies are increasingly joining in on the cloud migration to address their needs for large data set analysis, process automation, and increased efficiency. Cloud platforms also provide advanced, customizable tools and development frameworks that enterprises need to maintain competitive advantages.
That’s where Snowflake (NYSE: SNOW) comes into play. The company addresses those demands by essentially being a data warehouse provider while offering a veritable suite of cloud services. As Big Tech’s hyperscalers and smaller organizations continue to rely on the cloud, Snowflake is well-positioned to reward its shareholders for the long term.
Snowflake Isn’t Profitable—Yet
Despite the stocks’ run-up in 2025, which has resulted in a nearly 70% year-to-date gain, Snowflake continues to operate at a loss. In fact, the company has seen sizable net loss increases over the past several years.
That figure has grown from -$680 million in 2022 to -$1.286 billion in 2024—a more than 89% increase. However, at the same time, its net cash from operating activities has grown more than 772% from $110 million in 2022 to $960 billion in 2024.
But despite not yet achieving GAAP profitability, there’s a good reason the company is currently operating at a loss. Snowflake is aggressively investing in growth and market share, zeroing in on AI initiatives and a long-term strategy prioritizing expansion over short-term profitability. That results in much higher operating expenses for the company but can also pave the way to future profitability.
Snowflake’s Fortune 500 Clientele Are Improving Its Financials
While many companies share that vision of future profitability, Snowflake’s vision is more plausible given the firm’s Fortune 500 clientele. Spanning industries including automotive, finance, healthcare, retail, and technology, Snowflake provides its services to some of the biggest names in public and private markets.
Some of Snowflake’s customers include Amazon (NASDAQ: AMZN), Canva, Capital One (NYSE: COF), Coinbase (NASDAQ: COIN), Deloitte, Exxon Mobil (NYSE: XOM), Fidelity Investments, Netflix (NASDAQ: NFLX), OpenAI, Toyota (NYSE: TM), UnitedHealth Group (NYSE: UNH), and Walmart (NYSE: WMT).
Those companies and others rely on Snowflake’s cloud-native data platform for storage, processing, analytics, data engineering, and application workload scalability. The company also enables other firms to bridge gaps by operating a data marketplace and data exchange functionality, which allows secure data sharing between organizations.
Demand for those services has enabled Snowflake to enjoy consistently improving financials while it focuses on its long-term expansion and subsequently rises capital expenditures. From 2022 to 2024, net cash from investing increased from—$21 million to $191 million, while the company’s total assets ballooned from $6.65 billion to $9.03 billion—a nearly 36% increase.
SNOW Is a Buy According to Wall Street
SNOW shares are trading nearly 32% lower than their all-time high (ATH), which the stock hit a little more than a year after its September 2020 IPO. However, given its expansion strategy and the cloud services market’s CAGR of 20.4% through 2030, there’s plenty of room for the stock to challenge its ATH in the coming years.
Last year, the cloud services market was estimated to be worth $752 billion. That figure is forecast to grow to $2.39 trillion by the end of 2030. Meanwhile, the North American market accounts for 39% of the overall market’s revenue share.
Institutional ownership stands at 65.10%, with buyers (1,023) and inflows ($18.05 billion) outnumbering sellers (566) and outflows ($5.68 billion) over the past 12 months. In the near term, SNOW’s short interest is a palatable 3.52% of the float.
Of the 44 analysts covering Snowflake, 38—or more than 86%—assign the stock a Buy rating.
The company is slated to report Q3 earnings on Wednesday, November 19, after the market closes. It will be looking to build on momentum from Q2, when Snowflake beat on earnings and revenue. It reported EPS of 35 cents versus analysts’ consensus estimates of 27 cents and revenue of $1.14 billion—a 31.8% year-over-year increase—versus the consensus estimate of $1.09 billion.
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