Snowflake Has a Hot New Product

SNOW NVDA VICI In this episode of Motley Fool Hidden Gems Investing, Motley Fool contributors Jon Quast, Matt Frankel, and Travis Hoium discuss: Plunging demand for mortgage refinancing. The sneaky potential benefit to Vici Properties. To catch full episodes of all The Motley Fool s free podcasts, check out our podcast center. When you re ready to invest, check out this top 10 list of stocks to buy. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » Before you buy stock in Snowflake, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Snowflake wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,191!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,258,838!* Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 211% for the S&P 500. Don t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. *Stock Advisor returns as of June 6, 2026. This podcast was recorded on May 28, 2026. Jon Quast: Snowflake has a hot new product. This is Motley Fool Hidden Gems Investing. Welcome to Motley Fool Hidden Gems Investing. I m Jon Quast, filling in today for Tyler Crowe. That means that Travis Hoium is filling in for me, along with the Fool contributor Matt Frankel. John Quast: That s all right. Listen, we have some news here for real estate, and some acquisition news we re going to get to. But first, let s talk about Snowflake because this is an $80 billion company, and it s up a whopping 37% today. This, of course, the data management, and analytics software company and this was the hot thing when it first went public, and it is down about 50% from its all-time high. Way back in 2021, this company was known for incredible growth rates, but the growth rate was just steadily declining. But here in this quarter, revenue all of a sudden jumped to 33% growth, and management raised its guidance for the year. All of a sudden, we see a little bit of growth is maybe picking back up again for Snowflake. What is interesting here, is that the analysts were really curious what is driving this surprise growth, and Snowflake s management crediting a new product that it launched during the quarter called Cortex Code or Coco. That is what is really accelerating things here. Travis, I just want to throw it to you. What is Coco, and why do Snowflake s customers like it so much? Travis Hoium: Well, this is their native coding agent. In artificial intelligence today, coding, and using AI for coding is all the rage right now. It s operating in plain language, gets a request, and then does work for the user. I think what differentiates it, for Snowflake is it lives inside Snowflake, so it can access all of the data that a business has on Snowflake. In theory, that should make life a lot easier for developers building agents, which is another one of those hot words in the market, and other tools. I ll note that this is the thing that almost every Claude company, the big hyperscalers are starting to launch. I don t know that this is necessarily a long-term differentiator, but at least short-term, this is the thing they got to put out. Jon Quast: Well, it s interesting that you say that, I do want to double down here a little bit with this Coco product. These AI tools from Snowflake, these are what are driving the growth, but these are actually a little bit lower gross margins. Snowflake is known for an incredible gross margin, but these tools a little bit lower on the gross margin side. What is also interesting is Snowflake doesn t own all of its compute. It relies on this from third parties, the Claude computing providers. When you re scaling with these AI tooling that are living these Claude computing giants where maybe you don t control the cost, that is an interesting thing. I know you, Travis, are always talking about business models. When you think about the business models here, where do you want to be? Travis Hoium: Snowflake is such an interesting company to look at because there s the story of the company, and then you start to look at the financials, and that s where the business model has to show up in the numbers. I think you look at their income statement is one of the strangest that I ve ever looked at because it s incredibly long because they break out all these non-GAAP numbers and then GAAP numbers

Snowflake Has a Hot New Product

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