Data warehouse-as-a-service Snowflake (NYSE:SNOW) fell short of the market’s revenue expectations in Q1 CY2025, but sales rose 25.7% year on year to $1.04 billion. Its non-GAAP EPS of $0.24 per share was 13.1% above analysts’ consensus estimates.
In a sliding market, Snowflake has defied the odds, trading up to $206.89 per share. Its 18.4% gain since November 2024 has outpaced the S&P 500’s 1.9% drop. This was partly thanks to its solid quarterly results, and the performance may have investors wondering how to approach the situation.
Slootman runs his companies with Steve Jobs' binary motto: a product is either 'insanely great' or 'total sh*t.' This forces teams to strive for greatness, echoing Jobs' views. Others, like Reed Hastings and Elon Musk, also use extreme language to drive excellence.
Expensive stocks often command premium valuations because the market thinks their business models are exceptional.
However, the downside is that high expectations are already baked into their prices, leaving little room for error if they stumble even slightly.
Shares of data warehouse-as-a-service Snowflake (NYSE:SNOW) jumped 11.7% in the afternoon session after the company reported impressive first quarter 2025 (fisal 2026) results, which beat analysts' sales expectations.
Snowflake's Q1 report and guidance update affirm an outlook for sustained 20% long-term growth, and the analysts are responding favorably to share prices.
