15 AI News Stories Shaking Up Wall Street

5. Snowflake Inc. (NYSE:SNOW)

Market Capitalization: $42.22 billion

Snowflake Inc. (NYSE:SNOW) is an artificial intelligence data cloud company benefiting from the AI boom as data warehouses are a critical component in making AI useful for enterprises.

On November 15, Piper Sandler analyst Brent Rabatin reiterated an “Overweight” rating and $165.00 price target on Snowflake Inc. (NYSE:SNOW). The analyst remains cautious ahead of Snowflake’s earnings report, highlighting that the negative investor sentiment regarding the stock may not be alleviated. The sentiment stems from several factors such as increased competition from cloud providers, slowdown in cloud computing growth, and challenges in adapting to the AI landscape. The Overweight rating is maintained on the back of an attractive risk-reward profile, with analysts suggesting buying on pullbacks as growth is expected to recover in the following year.

“Earnings next Wednesday (11/20) may not be the cure for negative investor sentiment that has soured on SNOW and remains cautious given the expected ~6% top-line drag on platform performance improvements likely to materialize, pressuring 2H product growth to fall below 25% (vs. 32% in 1H). Growth concerns are partially reflected in the 35% sell-off YTD (vs. +25% S&P 500) and the valuation multiple, with CY26E EV/FCF falling to 29x (vs. 46x entering this year). We maintain an Overweight rating on favorable risk-reward and would add to positions on pullbacks ahead of a potential growth recovery next year”.