Snowflake's stock surges 62% as AI investments boost future obligations despite margin pressure.

Snowflake's stock has risen 62% in three months, driven by strong Q3 performance and AI application growth, though its valuation is high at 17 times sales. The company is investing in AI infrastructure, which has pressured margins but boosted its remaining performance obligations by 55% to $5.7 billion. Despite the high premium, growth investors may find it appealing due to potential earnings growth from AI solutions.

2 months ago
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