Weng
Co-Founder of Revealera, Hiring & Technology Trends
OpenAI and Anthropic will eat Snowflake's and Databricks' business. Both cloud data platforms are cooked. x.comÂ
Alphabet's 103% year-over-year cloud growth makes its roughly 10% overnight stock drop hard to understand. That growth matters more here than what the rest of the company is doing. x.comÂ
Snowflake is evolving from a cloud data warehouse into the default data and AI control plane for large enterprises, an inflection the market misses by treating it as a maturing former hypergrowth name. The shift shows in customer commitments, workload expansion and platform centrality, supporting a credible path to $500. @buccocapital notes a customer rebuilt Gainsight on Snowflake in five hours, suggesting it may be the assailant in the SaaSpocalypse rather than a victim. x.com x.comÂ
Snowflake's valuation looks full after more than doubling since May on an AI inflection story, given five years of promised inflections that didn't materialize. Stock-based compensation remains heavy at $1.6B against FY2026 revenue of $4.7B, though dilution has been kept in check lately. At about 23x EV/revenue, or 19x forward, it sits near the top of its 2-3 year range. A Databricks IPO could make investors see Snowflake as old relic tech. x.com x.comÂ
Snowflake is still not GAAP profitable at a $125 billion valuation because it keeps chasing top-line growth at any cost. x.comÂ
Snowflake is overlooked AI infrastructure because every enterprise AI model needs clean, governed data to run on. It has 126% net revenue retention, $9.77 billion of contracted future revenue and 813 of the world's 2,000 largest companies as customers. x.comÂ
Datadog is one of the best-run software companies, spending more on R&D and much less on sales and administration than peers while still growing 36% recently. Rubrik and Snowflake spend massively on SG&A, and Palo Alto Networks and CrowdStrike are no better. x.com x.comÂ
Snowflake now looks really expensive against a $180-200 valuation, even though the business remains strong. It is growing around 30% and pushing hard into AI with its cloud data solutions, which could drive strong growth for years. x.comÂ
Snowflake's Q2 shows AI is supercharging data platforms rather than cannibalizing them, as Cortex and AI workloads turn into a compute flywheel. Product revenue rose 37% to $1.49B against 30% guidance, RPO grew 30% to $9.0B and enterprise consumption is clearly accelerating. x.comÂ
AI agents are starting to do for free what Snowflake and other cloud software companies charge subscriptions for, erasing their pricing power. The same AI is a revenue engine for chips, as infrastructure spending flows through Nvidia, AMD and TSMC hardware. The split shows in markets: SOXX is up 25% from its March low while WCLD fell 5% and Snowflake 8.4%. x.comÂ