Snowflake vs. Amazon: Which Cloud Data Stock Has an Edge Now?

Snowflake SNOW and Amazon AMZN are major players in the cloud data and analytics space. While Snowflake provides a pure-play cloud data warehousing and analytics platform, Amazon, through its cloud computing platform, AWS, offers solutions such as Amazon Redshift and SageMaker, enabling advanced data analytics and machine learning capabilities.Per the Grand View Research report, the global cloud analytics market size was valued at $35.39 billion in 2024 and is expected to reach $130.63 billion by 2030, registering a CAGR of 25.5% from 2025 to 2030. Both Snowflake and Amazon are poised to benefit from this rapid growth pace.Snowflake or Amazon — Which of these Cloud Data stocks has the greater upside potential? Let’s find out.The Case of SNOW StockSNOW is benefiting from strong adoption and increasing usage of its platform, as reflected by the net revenue retention rate of 125% in the second quarter of fiscal 2026. The company reported 19% year-over-year growth in the number of customers, reaching 12,062 in the second quarter of fiscal 2026. The company now has 654 customers with trailing 12-month product revenues greater than $1 million and 751 Forbes Global 2000 customers.Snowflake’s expanding portfolio has been a significant growth driver. The company launched approximately 250 new capabilities in the first half of fiscal 2026, including Snowflake Intelligence, Cortex AI SQL, Gen2 warehouses, Snowflake Postgres and Snowflake OpenFlow. These innovations simplify data management, enhance performance and enable AI-driven insights.Building on this momentum, SNOW recently launched Cortex AI for Financial Services and a managed Model Context Protocol Server, enabling financial institutions to securely deploy AI models, agents and apps using unified proprietary and third-party data within Snowflake’s AI Data Cloud.Snowflake’s collaboration with OpenAI, Anthropic and Microsoft Azure is expanding its reach and enhancing its AI capabilities. Azure was the fastest-growing cloud for Snowflake, with 40% year-over-year growth in the second quarter of fiscal 2026.The Case of AMZN StockAmazon is expanding its footprint with Redshift, its fully managed, petabyte-scale cloud data warehouse service offered by Amazon Web Services (AWS), to provide faster analytics and seamless SQL-based integration for enterprise customers.The growing adoption of AWS services, including Redshift, has contributed significantly to AWS’s financial performance. In the second quarter of 2025, AWS reported revenues of $30.9 billion, marking a 17.5% year-over-year increase. AWS now has an annual revenue run rate exceeding $123 billion. Amazon continues to see strong demand for its cloud services, driven by enterprises accelerating their migration from on-premises to the cloud and leveraging generative AI capabilities.In the second quarter of 2025, AWS supported organizations of all sizes as they transitioned to the cloud, securing agreements with major companies such as PepsiCo, Airbnb, Peloton, NASDAQ and Nissan Motor.Price Performance and Valuation of SNOW and AMZNIn the year-to-date period, SNOW shares have surged 52.3%, outperforming AMZN shares, which have rallied 0.1%. The outperformance in SNOW stock is driven by its strong portfolio and an expanding partner base. Despite an expanding portfolio and clientele, AMZN's elevated operating expenses amid intensifying cloud competition remain headwinds.SNOW and AMZN Stock PerformanceImage Source: Zacks Investment ResearchBoth SNOW and AMZN shares are currently overvalued, as suggested by a Value Score of F and D, respectively.  In terms of forward 12-month Price/Sales, SNOW shares are trading at 15.04X, higher than AMZN’s 3.07X.SNOW and AMZN ValuationImage Source: Zacks Investment ResearchHow Do Earnings Estimates Compare for SNOW & AMZN?The Zacks Consensus Estimate for SNOW’s fiscal 2026 earnings is pegged at $1.17 per share, which has increased by a couple of pennies over the past 30 days. This indicates a 40.96% increase year over year.Snowflake Inc. Price and Consensus Snowflake Inc. price-consensus-chart | Snowflake Inc. QuoteThe Zacks Consensus Estimate for AMZN’s 2025 earnings is pegged at $6.76 per share, which has increased 0.44% over the past 30 days. This indicates a 22.24% increase year over year.Amazon.com, Inc. Price and Consensus Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. QuoteConclusionWhile both SNOW and AMZN are well-positioned to benefit from the booming cloud data and analytics space, AMZN’s diversified AWS ecosystem and strong revenue growth give it a more sustainable growth edge over Snowflake.Despite SNOW’s robust portfolio, stiff competition from hyperscale cloud providers remains a headwind. Elevated infrastructure spending, particularly on GPUs to support AI-driven initiatives, is adding to cost pressures.Snowflake and Amazon carry a Zacks Rank #3 (Hold) at present. 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(AMZN): Free Stock Analysis Report Snowflake Inc. (SNOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks