Snowflake vs Cloudflare
This page compares Snowflake and Cloudflare, presenting an objective view of their business models, financial performance, and market context. It explains how each company positions itself, the factors shaping its value, and what readers should know in a clear, accessible way. Educational content, not financial advice.
This page compares Snowflake and Cloudflare, presenting an objective view of their business models, financial performance, and market context. It explains how each company positions itself, the factor...
Why It's Moving
Snowflake rallies on solid Q3 results but tumbles after cautious Q4 outlook and insider sales shake confidence
- Earnings beat: Snowflake posted Q3 revenue of $1.21B (+28.7% year‑over‑year) and non‑GAAP EPS of $0.35, both above Wall Street expectations—evidence of continued demand and strong net revenue retention that supports longer‑term monetization trends.
- Disappointing guidance: Management’s Q4 product‑revenue outlook implied a growth deceleration versus Q3’s pace, prompting investors to reprice near‑term growth expectations and triggering an ~11% intraday decline as markets focused on momentum slowing.
- Insider selling and positioning: An EVP sold ~10,000 shares (≈$2.5M), which preceded a premarket gap down and, together with heavy options activity, intensified short‑term pressure despite several analysts maintaining buy ratings and raised targets.
Cloudflare surges on analyst upgrades and AI edge amid insider sales and outage hiccups.
- Citizens maintained Market Outperform rating on Dec 8 with $270 target, citing Cloudflare's key role in Google's data visibility edge for AI model training[3][2].
- Director Michelle Zatlyn sold 71,441 shares for $15.8M from Dec 9-11 under Rule 10b5-1 plan, near current prices around $208, signaling routine profit-taking[2][6].
- Recent network outage and Workers script errors investigated, yet analysts like TD Cowen hold Buy at $265, betting on AI platform acquisition of Replicate[2].
Snowflake rallies on solid Q3 results but tumbles after cautious Q4 outlook and insider sales shake confidence
- Earnings beat: Snowflake posted Q3 revenue of $1.21B (+28.7% year‑over‑year) and non‑GAAP EPS of $0.35, both above Wall Street expectations—evidence of continued demand and strong net revenue retention that supports longer‑term monetization trends.
- Disappointing guidance: Management’s Q4 product‑revenue outlook implied a growth deceleration versus Q3’s pace, prompting investors to reprice near‑term growth expectations and triggering an ~11% intraday decline as markets focused on momentum slowing.
- Insider selling and positioning: An EVP sold ~10,000 shares (≈$2.5M), which preceded a premarket gap down and, together with heavy options activity, intensified short‑term pressure despite several analysts maintaining buy ratings and raised targets.
Cloudflare surges on analyst upgrades and AI edge amid insider sales and outage hiccups.
- Citizens maintained Market Outperform rating on Dec 8 with $270 target, citing Cloudflare's key role in Google's data visibility edge for AI model training[3][2].
- Director Michelle Zatlyn sold 71,441 shares for $15.8M from Dec 9-11 under Rule 10b5-1 plan, near current prices around $208, signaling routine profit-taking[2][6].
- Recent network outage and Workers script errors investigated, yet analysts like TD Cowen hold Buy at $265, betting on AI platform acquisition of Replicate[2].
Which Baskets Do They Appear In?
Data Infrastructure M&A Overview: Consolidation Trends
Data streaming company Confluent is exploring a sale, signaling a potential wave of consolidation in the data software sector. This theme focuses on other companies in the data infrastructure and AI space that could become attractive acquisition targets.
Published: October 8, 2025
Explore BasketCloud Security After Salesforce Breach Explained
A massive data breach targeting Salesforce customers has exposed critical vulnerabilities in cloud software integrations. This event is poised to accelerate enterprise spending on specialized cybersecurity, creating an opportunity in companies that secure cloud applications and data.
Published: October 6, 2025
Explore BasketTikTok Investment: What's Next for Tech Partners
Following a major investment led by Oracle, TikTok's U.S. operations are being restructured to comply with American regulations. This shift creates a significant opportunity for U.S. tech companies that provide the essential data security, cloud services, and algorithm auditing needed to ensure its independence.
Published: September 28, 2025
Explore BasketWhich Baskets Do They Appear In?
Data Infrastructure M&A Overview: Consolidation Trends
Data streaming company Confluent is exploring a sale, signaling a potential wave of consolidation in the data software sector. This theme focuses on other companies in the data infrastructure and AI space that could become attractive acquisition targets.
Published: October 8, 2025
Explore BasketCloud Security After Salesforce Breach Explained
A massive data breach targeting Salesforce customers has exposed critical vulnerabilities in cloud software integrations. This event is poised to accelerate enterprise spending on specialized cybersecurity, creating an opportunity in companies that secure cloud applications and data.
Published: October 6, 2025
Explore BasketTikTok Investment: What's Next for Tech Partners
Following a major investment led by Oracle, TikTok's U.S. operations are being restructured to comply with American regulations. This shift creates a significant opportunity for U.S. tech companies that provide the essential data security, cloud services, and algorithm auditing needed to ensure its independence.
Published: September 28, 2025
Explore BasketAlphabet Antitrust Ruling (Data Sharing Impact)
Alphabet's market capitalization soared past $3 trillion following a favorable antitrust ruling that allowed it to retain its core assets. This outcome creates a potential opening for competitors who will gain access to Alphabet's data, potentially leveling the playing field.
Published: September 16, 2025
Explore BasketTrusted Partners (Oracle MSFT NET CYBR & More)
Oracle's reported deal to manage TikTok's U.S. operations highlights a critical need for trusted technology partners to navigate geopolitical tensions. This creates an investment opportunity in U.S. companies that provide secure data infrastructure and cybersecurity services to foreign firms.
Published: September 16, 2025
Explore BasketDigital Resilience Stocks: Outage Risks & Alternatives
A major outage at Google Meet underscored the risks of relying on a single digital communication platform. This event creates an investment opportunity focused on competing services and the essential infrastructure companies that ensure digital resilience and uptime.
Published: September 9, 2025
Explore BasketCloud Security's IPO Catalyst
Cybersecurity firm Netskope has filed for a U.S. IPO, signaling strong growth in the cloud security market. This move highlights an investment opportunity among publicly traded companies specializing in Secure Access Service Edge (SASE) and zero-trust technologies.
Published: August 24, 2025
Explore BasketFueling The AI Workforce
Google's $1 billion investment in AI education aims to significantly grow the U.S. talent pool of skilled professionals. This initiative is expected to increase demand for companies providing the essential cloud infrastructure and data analytics platforms that the expanding AI workforce will utilize.
Published: August 7, 2025
Explore BasketAI-Powered Digital Advertising Ecosystem
This carefully selected group of stocks captures companies revolutionizing digital advertising with artificial intelligence. Our professional analysts have identified businesses across ad-tech and cloud infrastructure that are uniquely positioned to benefit as AI transforms how digital ads are created, targeted, and delivered.
Published: July 20, 2025
Explore BasketAWS Restructuring Creates Cloud Competition Opportunity
Amazon's job cuts in its profitable AWS cloud division could mean big opportunities for competitors. This carefully selected group of stocks represents companies positioned to gain market share, attract top talent, and capitalize on this moment of cloud industry disruption.
Published: July 20, 2025
Explore BasketAI Talent Wars
This carefully curated collection of stocks captures the fierce battle for AI dominance. Professional analysts have selected companies across the entire AI value chain, from tech giants competing for top talent to the semiconductor firms and infrastructure providers powering this revolution.
Published: July 14, 2025
Explore BasketThe Figma Effect: Investing in Collaborative Tech
Figma's upcoming IPO is creating waves in the tech industry. This collection features companies positioned to benefit from growing demand for digital collaboration tools and a revitalized tech IPO landscape, carefully selected by our expert analysts.
Published: July 2, 2025
Explore BasketOracle's AI Cloud Catalyst
Oracle's recent surge proves AI is revolutionizing enterprise cloud spending. These carefully selected companies represent the entire AI infrastructure supply chain — from chips to networking to security — all positioned to ride the same powerful wave.
Published: July 1, 2025
Explore BasketRiding the Tech Rally
These carefully selected companies form the backbone of today's AI-driven tech boom. From semiconductors to cloud services, these stocks represent the picks and shovels powering the digital gold rush as mega-cap tech giants expand.
Published: June 30, 2025
Explore BasketSovereign-Cloud Specialists
These carefully selected stocks represent companies that keep sensitive digital data within national borders. As governments worldwide tighten regulations on data security, these specialized cloud providers are positioned to thrive in an increasingly data-nationalist world.
Published: June 17, 2025
Explore BasketInvestment Analysis
Snowflake
SNOW
Pros
- Snowflake has a high revenue growth rate of around 92%, more than double that of Cloudflare's 43%.
- The platform is versatile and well-suited for corporations with internal tech teams to build and leverage data solutions.
- Snowflake is viewed as positively under-priced relative to Cloudflare, making it a compelling value proposition in the high-growth SaaS sector.
Considerations
- Snowflake presents notable stock volatility, which may concern risk-averse investors.
- Its price-to-sales multiple around 84 indicates it is still relatively expensive by traditional valuation measures.
- Snowflake’s market size and revenue are smaller compared to some larger platform competitors like Palantir and Databricks.
Cloudflare
NET
Pros
- Cloudflare has delivered stronger stock returns historically and outperformed Snowflake in the past 12 months with over 140% growth.
- It has a higher Sharpe Ratio (2.37) indicating better risk-adjusted performance than Snowflake.
- Cloudflare has expanded from cybersecurity into developer services and is positioned as a platform for AI startups optimizing cost-effective AI model access.
Considerations
- Cloudflare is considered objectively overvalued compared to Snowflake on conventional metrics.
- Despite growth, Cloudflare's revenue base is significantly smaller than other AI/data platform competitors like Snowflake, Palantir, and Databricks.
- Persistent margin pressure and mixed analyst views on valuation create uncertainty around near-term profitability.
Why invest with Nemo?
Zero Commission
Trade stocks, ETFs, and more with zero commission. Keep more of your returns.
Trusted & Regulated
Part of Exinity Group 2015, serving over a million customers globally.
6% Interest on Cash
Earn 6% AER on uninvested cash with daily interest payments.
Discover More Comparisons
Snowflake vs Sea
Snowflake vs Sea: a comparison of business models
Snowflake vs Cadence
Snowflake vs Cadence: stock comparison
Snowflake vs Coinbase
Snowflake vs Coinbase: a stock comparison