Updated
Updated · Yahoo Finance · Sep 1
Cantor Fitzgerald Lifts Snowflake Target to $405 as Q2 Beat Seen at 3%
Updated
Updated · Yahoo Finance · Sep 1

Cantor Fitzgerald Lifts Snowflake Target to $405 as Q2 Beat Seen at 3%

3 articles · Updated · Yahoo Finance · Sep 1

Summary

  • $405 is Cantor Fitzgerald's new price target for Snowflake, up from $282, with the firm keeping an Overweight rating ahead of fiscal Q2 results due Sept. 2.
  • A 3% product-revenue beat versus guidance is what Cantor now expects, narrower than Snowflake's 5.5% beat last quarter and a sign strong execution may not fully surprise Wall Street.
  • Q2 demand still looks solid: Cantor cited strong Cortex Code adoption, core usage and ongoing cloud migrations, with AI-driven consumption supporting the business.
  • Q1 set a high bar, with product revenue up 34% year over year to $1.3 billion and net revenue retention at 126%, while more than 13,600 accounts used Snowflake's AI capabilities.
  • The broader debate is whether incremental AI spending can outweigh customer cost optimization as data-layer consolidation accelerates, even as hedge-fund holders rose to 103 from 80.

Insights

Can Snowflake's governed AI tools truly offset corporate spending cuts, or will sky-high expectations trigger a post-earnings reality check?
As CoCo usage skyrockets past 9,100 accounts, is Snowflake's bold AI pivot masking a slowdown in its core data business?