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...

Comparison Snapshot

Key Financial Metrics

SNOW

Metric

NET

$72.30B

Market Cap

$66.33B

33.88%

Potential Profit

14.39%

Buy

Analyst Rating

Buy

Why It's Moving

Snowflake Powers Ahead with Q1 Earnings Crush, Eyeing Robust AI Data Cloud Growth

Product revenue hit $996.8 million, up 26% YoY, beating expectations and highlighting sticky AI-driven workloads.
Net revenue retention rate of 124% reflects deep customer loyalty, with 606 clients now surpassing $1 million in trailing 12-month product revenue.
Remaining performance obligations jumped 34% to $6.7 billion, backing full-year guidance for $4.325 billion in product revenue and fueling investor optimism.

Sentiment:

🐃Bullish

Cloudflare Shares Surge 8.85% as AI Acquisitions and Analyst Upgrades Fuel Momentum

Stock jumped 8.85% to an intraday high of $193.69, driven by optimism around recent acquisitions bolstering AI data marketplaces and high-performance web frameworks.
DZ Bank upgraded shares from sell to hold with a $237 target, while Citizens reiterated Market Outperform at $270, highlighting Cloudflare's edge in agentic AI architectures.
Expanded JD Cloud tie-up slashes AI latency by up to 80%, opening doors to Chinese markets and underscoring robust demand from account executives exceeding Q4 quotas.

Sentiment:

🐃Bullish

Snowflake Powers Ahead with Q1 Earnings Crush, Eyeing Robust AI Data Cloud Growth

Product revenue hit $996.8 million, up 26% YoY, beating expectations and highlighting sticky AI-driven workloads.
Net revenue retention rate of 124% reflects deep customer loyalty, with 606 clients now surpassing $1 million in trailing 12-month product revenue.
Remaining performance obligations jumped 34% to $6.7 billion, backing full-year guidance for $4.325 billion in product revenue and fueling investor optimism.

Sentiment:

🐃Bullish

Cloudflare Shares Surge 8.85% as AI Acquisitions and Analyst Upgrades Fuel Momentum

Stock jumped 8.85% to an intraday high of $193.69, driven by optimism around recent acquisitions bolstering AI data marketplaces and high-performance web frameworks.
DZ Bank upgraded shares from sell to hold with a $237 target, while Citizens reiterated Market Outperform at $270, highlighting Cloudflare's edge in agentic AI architectures.
Expanded JD Cloud tie-up slashes AI latency by up to 80%, opening doors to Chinese markets and underscoring robust demand from account executives exceeding Q4 quotas.

Sentiment:

🐃Bullish

Investment 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.

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