Snowflake vs Sea

This page compares Snowflake and Sea Limited, outlining their business models, financial performance, and market context in a clear, neutral way. It explains how each company approaches data services and consumer platforms, highlighting differences in strategy, customers, and revenue models for informed understanding. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

SNOW

Metric

$72.30B

Market Cap

$74.55B

33.88%

Potential Profit

50.81%

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

Sea Limited Stock Surges on $1 Billion Buyback Announcement Signaling Strong Confidence.

Board authorized up to $1 billion in repurchases of American depositary shares via open market or other methods, based on market conditions.
Phillip Securities upgraded Sea from Neutral to Buy with $170 target, citing improved FY25/26 revenue growth in all segments despite higher marketing spend.
Buyback reflects optimism in core businesses amid positive analyst revisions and upcoming earnings expectations of 46.77% EPS growth.

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

Sea Limited Stock Surges on $1 Billion Buyback Announcement Signaling Strong Confidence.

Board authorized up to $1 billion in repurchases of American depositary shares via open market or other methods, based on market conditions.
Phillip Securities upgraded Sea from Neutral to Buy with $170 target, citing improved FY25/26 revenue growth in all segments despite higher marketing spend.
Buyback reflects optimism in core businesses amid positive analyst revisions and upcoming earnings expectations of 46.77% EPS growth.

Sentiment:

🐃Bullish

Investment Analysis

Snowflake

SNOW

Pros

Snowflake maintains a leading position in cloud data platforms, with accelerating enterprise adoption and deep integration of AI tools into its core offering.
The company has demonstrated consistent revenue growth and improving operating margins, supported by disciplined cost management and a premium valuation.
Strategic partnerships with major technology firms and continuous product innovation expand Snowflake’s ecosystem and address a broadening range of enterprise use cases.

Considerations

Snowflake remains unprofitable on a net income basis, with revenue growth expected to slow further in the near term.
The stock’s premium valuation leaves limited upside if execution falters or if enterprise AI adoption progresses more slowly than anticipated.
Significant downward analyst price targets highlight material downside risk relative to current trading levels, reflecting uncertainty over profitability timelines.

Sea

Pros

Sea Limited operates a dominant digital entertainment and e-commerce platform across Southeast Asia, with strong user growth and recurring revenue streams.
The company’s Shopee arm is a leading online marketplace in high-growth emerging markets, benefiting from rising internet penetration and digital consumption.
Sea’s diversified business model spans gaming, e-commerce, and fintech, providing multiple engines for growth and revenue diversification.

Considerations

Sea’s core e-commerce and digital financial services businesses face intense competition and require ongoing heavy investment, pressuring profitability.
Profitability remains elusive in key segments, with margins thin or negative due to aggressive customer acquisition and expansion strategies.
Regulatory risks and macroeconomic volatility in Southeast Asia could disrupt growth and introduce operational uncertainty.

Related Market Insights

AI Infrastructure Stocks: Will Agentforce Drive Growth?

Salesforce's £15bn Agentforce 360 investment fuels massive growth in AI infrastructure. Discover key stocks like NVIDIA & Snowflake with Nemo's thematic basket.