Financial institution of America analysts acknowledged potential destructive impacts for Snowflake (NYSE:) following a reported cyber menace impacting buyer accounts. Whereas sustaining a Impartial ranking and $200 value goal on the inventory, the agency highlights issues arising from the incident.
“Snowflake first turned conscious of unauthorized entry to sure buyer accounts on Could 23, 2024,” states the Financial institution of America be aware. The corporate, together with Google Mandiant, is investigating the problem that reportedly uncovered information from 165 organizations.
Analysts see potential enterprise implications, together with a potential pause in information migrations and new buyer acquisition as corporations consider the severity of the assault.
This might result in short-term income impacts, significantly in Q2 resulting from Snowflake’s pay-as-you-go mannequin. Nonetheless, the agency downplays the materiality of this impression for the reason that situation would not stem from a community breach.
The report additionally mentions potential buyer refunds in Q2 resulting from unauthorized information entry by hackers. Nonetheless, Financial institution of America states that Snowflake believes the affected accounts weren’t utilizing multi-factor authentication (MFA), which allowed the hackers to steal credentials, entry account cases and exfiltrate buyer information, somewhat than exploit a vulnerability inside Snowflake’s platform.
Trying forward, the agency believes the state of affairs might be addressed by stricter joint controls between Snowflake and its prospects. They added that Snowflake has already carried out MFA necessities for at-risk accounts. Whereas acknowledging potential buyer satisfaction points arising from the incident, analysts seem optimistic about Snowflake’s means to deal with safety issues.