Snowflake Inc (NYSE:SNOW) is under close scrutiny following reports of data breaches involving some of its key customers, including Santander Bank and Ticketmaster.
Hackers claimed to have stolen hundreds of millions of customer data. Australian authorities have confirmed successful compromises from several companies using Snowflake, TechCrunch reports.
Snowflake stock is trading lower on Thursday.
Also read: Snowflake and NVIDIA team up for AI revolution: details
Snowflake acknowledged unauthorized access to a limited number of customer accounts, but found no evidence of a direct system breach.
The breaches occurred due to vulnerabilities in single-factor authentication. Snowflake advised customers to enable multi-factor authentication (MFA) to improve security.
TechCrunch reported that hundreds of Snowflake customer credentials were exposed online due to malware stealing.
In May, Snowflake reported first-quarter revenue growth of 33% year over year to $828.7 million, beating analysts’ consensus estimate of $785.87 million. Earnings per share of $0.14 were above analyst consensus estimates of $0.18.
Analysts pointed to Snowflake’s GenAI initiatives, including Arctic and Cortex, which caught investors’ attention.
Recent reports indicated that Snowflake CEO Sridhar Ramaswamy is looking to make artificial intelligence acquisitions to take on the competition.
Snowflake shares have lost more than 26% in the past twelve months. Investors can gain exposure to the stock through Vanguard Total Stock Market ETF (NYSE:VTI) and Vanguard Information Tech ETF (NYSE:VGT).
Price promotion: At last check on Thursday, SNOW shares were trading 0.42% lower at $133.73.
Disclaimer: This content was produced in part using AI tools and was reviewed and published by Benzinga’s editorial staff.
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This article Snowflake hit by data breach – What’s going on? originally appeared on Benzinga.com
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