Snowflake (NYSE:SNOW), a specialist in the information technology sector, recently showed off its plans to enter the growing artificial intelligence (AI) market. A slate of new tools were shown off at its annual user conference, but investors weren’t exactly pleased with what they saw. In fact, they sent Snowflake shares down fractionally in today’s trading.
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One of the biggest announcements was Snowflake Notebooks, which was made available today for public preview. With Snowflake Notebooks, those who use Markdown, Python, and SQL will get a new development interface backed up by editing features that take advantage of AI tools. It’s a combination of Snowflake’s data plus some new ways to use that data.
Snowflake Trail also emerged, which focuses on an easy way to find and fix errors. Finally, Snowflake brought out a boost to Snowflake Cortex AI, offering a means to rapidly develop chatbots that can produce needed answers to questions about conditions on the ground.
Not All New Developments Are Good
While these should have been perhaps a little better received, Snowflake also brought out less pleasant news. Snowflake noted that some of its users had been attacked online, as part of what Snowflake called a larger campaign. Snowflake noted that the users being attacked are using single-factor authentication for their security, and the attackers are using credentials purchased from black market sources or stolen with malware. As a result, Snowflake is strongly encouraging organizations to start using two-factor authentication at once.
Is Snowflake a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SNOW stock based on 25 Buys, nine Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 25.05% loss in its share price over the past year, the average SNOW price target of $207.57 per share implies 51.85% upside potential.
