Jim Cramer on Snowflake: “One of the Rare Software Companies That’s Convinced Wall Street It Can Make a Killing From AI”

Snowflake Inc. (NYSE:SNOW) is one of the stocks Jim Cramer shed light on. Cramer highlighted the stock’s price action after its earnings, as he commented:

“What the heck just happened to the stock of Snowflake? The company reported a seemingly robust quarter after the close, and the stock breaking down in after-hours trading. [Does] that make sense? I don’t know. Some of that’s because Snowflake was up more than 70% for the year going into today’s close. This is one of the rare software companies that’s convinced Wall Street it can make a killing from AI rather than just be killed by AI. And the numbers have mostly backed them up. Today, there was a fly in the ointment. Snowflake’s operating margin guidance for the current quarter came in about 7%, analysts were… looking for 8.5%… It was lower than people expected.”

A laptop and a computer monitor display a detailed stock market technical analysis chart. Photo by Jakub Zerdzicki on Pexels

Snowflake Inc. (NYSE:SNOW) provides a cloud platform that helps organizations pull their data into one place so they can analyze it, build data apps, share information, and use AI to solve business challenges.

While we acknowledge the risk and potential of SNOW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SNOW and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.