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.

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