Snowflake A

About $700 million was pulled from the iShares Expanded Tech-Software Sector ETF (IGV) in a single session, and within hours Snowflake reported a strong quarter with 37% product revenue growth and raised its FY27 guide. Snowflake's AI-driven acceleration lifted IGV the next day, but the fund remains down year-to-date amid a sector debate over AI winners with consumption pricing versus struggling seat-based vendors like Adobe. IGV is concentrated in a few top holdings and may serve as a 5–10% software sleeve, though overlap with direct Microsoft exposure and ongoing AI bifurcation make its outlook cautious. » More on finance.yahoo.com

Snowflake raised its fiscal 2027 product revenue guidance to $6.07 billion (36% growth) and reported accelerating product growth driven by core platform strength and rising AI adoption. The company posted a 126% net revenue retention rate and RPO of $9.0 billion, though RPO growth has cooled from 42% to 30% year over year. Analyst projects about 32% growth would push product revenue past $8 billion in fiscal 2028, while noting slower RPO growth or retention declines could prevent reaching that milestone. » More on finance.yahoo.com

Morgan Stanley increased its price target for Snowflake to $470 from $300 and kept an Overweight rating after Snowflake reported accelerating revenue growth and beat Q2 fiscal 2027 expectations. Product revenue rose 37% year over year to $1.49 billion, net revenue retention was 126%, and large-account counts and AI product adoption (CoCo, CoWork) expanded notably. Management raised full-year product revenue guidance and highlighted AI-driven efficiency that supported margin expansion, though adjusted free cash flow missed expectations and AI workloads compressed product gross margin. Morgan Stanley's bullish view assumes sustained high growth and rising free cash flow, underpinning the new valuation. » More on finance.yahoo.com