SNOW is a U.S.-based cloud data platform company that enables organisations to store, manage, and analyse large volumes of data seamlessly across multiple cloud providers. Its core business is Data Cloud, a platform that lets companies centralise data from different sources, run analytics, and share data securely in real time. Unlike traditional databases, Snowflake separates storage and compute, allowing customers to scale each independently, improving performance and cost efficiency. The revenue model is subscription-based, driven by usage (customers pay for how much storage and computing power they consume).
Snowflake’s newer products (like Snowpark, Cortex, and Dynamic Tables) are gaining traction, and its recent acquisitions (such as Crunchy Data for Postgres support) position it to broaden its offering beyond core data warehousing. While Databricks is a formidable competitor, we believe the market is expanding fast enough for both players to thrive.
For example, Market Matters could leverage Snowflake to analyse user login patterns, click-through rates, and conversions, helping to determine ROI on marketing spend. As MM expands its service offerings, Snowflake could also maintain accurate transaction logs, generate regulatory risk reports, and provide deeper insights into user behaviour on the website, enabling continuous improvements to our subscribers’ experience. This $US83bn “recovery stock” has guided to 3Q25 revenue of $US850–855mn, representing +22% year-over-year growth, pointing to accelerating scale due to growing adoption in the AI and data cloud sectors.
Risks/things to watch:
- Still not highly profitable (at least historically) at scale; competition from hyperscalers (AWS, Azure) is fierce; margin pressure possible, but it’s a good example of an AI‑platform business with real revenue traction, rather than just fantasy.
No. 2 pick in today’s report, with MM considering adding SNOW for its International Equities Portfolio:
MM is bullish towards SNOW
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