Databricks Raises $5 Billion, Valuation Reaches $134 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy SNOW?
Source: stocktwits
- Massive Funding Round: Databricks successfully raised $5 billion from investors including Goldman Sachs and Morgan Stanley, along with an additional $2 billion in debt capacity, elevating its valuation to $134 billion, which is more than double that of its closest competitor, Snowflake, indicating strong market confidence in its growth potential.
- Significant Revenue Growth: For the January quarter, Databricks reported annualized revenue exceeding $5.4 billion, a 65% year-over-year increase, which not only surpasses Snowflake's estimated revenue of $3.6 billion for 2025 but also highlights robust demand in the data analytics and AI sectors.
- AI Product Expansion: The company’s annualized revenue from AI products has now exceeded $1.4 billion, showcasing a significant return on investment in AI, especially amid a broader downturn in software stocks, underscoring the attractiveness and competitiveness of its offerings.
- IPO Prospects Under Scrutiny: Despite market volatility, CEO Ali Ghodsi indicated that Databricks is prepared to go public when the timing is right, suggesting a cautious approach to market conditions, particularly if the current correction continues, which reflects a strategic mindset towards potential IPO timing.
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Analyst Views on SNOW
Wall Street analysts forecast SNOW stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 172.910
Low
237.00
Averages
285.29
High
325.00
Current: 172.910
Low
237.00
Averages
285.29
High
325.00
About SNOW
Snowflake Inc. is a data cloud and artificial intelligence company. Its platform is the technology that powers the AI Data Cloud, enabling customers to consolidate data into a single source of truth to drive meaningful insights, apply artificial intelligence (AI) to solve business problems, build data applications, and share data and data products. It provides its platform through a customer-centric, and consumption-based business model. Its cloud-native architecture consists of three independently scalable but logically integrated layers across compute, storage, and cloud services. The compute layer provides dedicated resources to enable users to simultaneously access common data sets for many use cases with minimal latency. The storage layer ingests massive amounts and varieties of structured, semi-structured, and unstructured data to create a unified data record. Its ClearQuery platform allows users to rapidly search, explore, and analyze their data using natural language queries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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