Snowflake Hit With Data Breach - What's Going On?

Snowflake Inc (NYSE:SNOW) is facing scrutiny after reports of data breaches affecting some of its major clients, including Santander Bank and Ticketmaster.

Hackers claimed to have stolen hundreds of millions of customer records. Australian authorities confirmed successful compromises of several companies using Snowflake, TechCrunch reports.

The Snowflake stock is trading lower on Thursday.

Also Read: Snowflake & NVIDIA Team Up For AI Revolution: Details

Snowflake acknowledged unauthorized access to a limited number of customer accounts but found no evidence of a direct system breach.

The breaches occurred due to single-factor authentication vulnerabilities. Snowflake advised customers to enable multi-factor authentication (MFA) to enhance security.

TechCrunch reported seeing hundreds of Snowflake customer credentials available online due to infostealing malware.

In May, Snowflake reported first-quarter revenue growth of 33% year-over-year to $828.7 million, beating the analyst consensus estimate of $785.87 million.  EPS of $0.14 missed the analyst consensus estimates of $0.18.

Analysts flagged Snowflake’s GenAI initiatives, including Arctic and Cortex, piquing investor attention.

Recent reports indicated Snowflake CEO Sridhar Ramaswamy is eying artificial intelligence acquisitions to beat the competition.

Snowflake stock has lost over 26% in the last 12 months. Investors can gain exposure to the stock via Vanguard Total Stock Market ETF (NYSE:VTI) and Vanguard Information Tech ETF (NYSE:VGT).

Price Action: At the last check on Thursday, SNOW shares were trading lower by 0.42% at $133.73.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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