(Reuters) -Snowflake shares rose more than 28% on Thursday after the data analytics provider raised its annual product revenue guidance, signaling growing demand for cloud-based data storage and analytics.
The company, whose shares are down 35% this year, is on track for its best day since going public in 2020.
Its value is expected to rise by more than $12 billion to a market capitalization of $43.3 billion if gains continue.
The Bozeman, Montana-based company’s results come months after Sridhar Ramaswamy took over as CEO, having previously led Snowflake’s AI strategy as SVP of AI, and since then analysts have been watching how the company’s AI efforts progress the company under the new management.
Snowflake announced a partnership with Anthropic on Wednesday, allowing customers to enhance their AI applications using Anthropic’s large language models on Snowflake’s cloud-based data platforms.
The multi-year agreement will also enable Snowflake’s AI agents to analyze data and generate visualizations, among other things, the company said.
The company expects product sales of $3.43 billion for 2025, up from its previous forecast of $3.36 billion.
“It doesn’t sound like the macro numbers are improving dramatically, but better sales execution and new product momentum are helping Snowflake achieve these results,” Barclays analysts wrote in a note.
At least 20 analysts raised PT on the stock, while at least three raised their ratings on the stock. The average vision was $185, which represents an increase of 43.3%.
The company’s shares traded 147.32 times their trailing-12-month earnings estimates, compared to 67.01 for Datadog and MongoDB’s 91.04.
(Reporting by Priyanka.G and Akash Sriram in Bengaluru; Editing by Tasim Zahid)
