Snowflake CEO Steps Down, AI Founder Takes Helm Amid Customer Concerns
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Frank Slootman, Snowflake's CEO, is unexpectedly stepping down from his role as CEO but will remain Chairman. The new CEO is Sridhar Ramaswamy.
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Slootman has an impressive track record but is not a founder like leaders of other major tech companies. Ramaswamy was a founder of an AI company acquired by Snowflake.
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The transition signals Snowflake's increasing focus on leveraging AI capabilities going forward. However, investors reacted negatively initially, with the stock down over 20% after hours.
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While Snowflake has strong revenue growth, its net revenue retention rate has declined for 7 straight quarters, signaling potential issues retaining customers.
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Snowflake aims to capitalize on growth in AI and cloud spending, but execution under the new CEO is uncertain. Investors may want to wait and assess progress in coming quarters.