Snowflake Inc. shares fell 3.80% as the stock hit a 20-day low amid broader market weakness, with the Nasdaq-100 down 0.16% and the S&P 500 down 0.25%.
The company recently announced its acquisition of Observe for approximately $1 billion, aiming to enhance its AI Data Cloud by integrating AI-powered observability. This strategic move is expected to improve operational efficiency by allowing enterprises to manage telemetry data more effectively, transitioning from traditional alert-based monitoring to automated troubleshooting. Despite the positive news of the acquisition, Snowflake's stock is currently trading below both its 20-day and 100-day simple moving averages, indicating short-term market weakness.
This acquisition positions Snowflake to strengthen its competitive edge in the IT operations management market, which is valued at $50 billion. By leveraging Observe's technology, Snowflake aims to enhance its data management capabilities and operational resilience, although the stock's current performance reflects broader market challenges.
Wall Street analysts forecast SNOW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNOW is 285.29 USD with a low forecast of 237.00 USD and a high forecast of 325.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
Wall Street analysts forecast SNOW stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNOW is 285.29 USD with a low forecast of 237.00 USD and a high forecast of 325.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 211.270
Low
237.00
Averages
285.29
High
325.00
Current: 211.270
Low
237.00
Averages
285.29
High
325.00
Argus
Hold
to
Buy
upgrade
2026-01-08
Reason
Argus
Price Target
AI Analysis
2026-01-08
upgrade
Hold
to
Buy
Reason
Argus upgraded Snowflake to Buy from Hold.
Argus
Hold
to
Buy
upgrade
$300
2026-01-08
Reason
Argus
Price Target
$300
2026-01-08
upgrade
Hold
to
Buy
Reason
As previously reported, Argus upgraded Snowflake to Buy from Hold with a $300 price target. The firm sees a "good entry point for investors" after the market took shares down a notch following a disappointing Q3 report, the analyst stated. While acknowledging that Snowflake's consumption-based revenue model may lead to some inconsistent results from time to time, the firm highlights that the company continues to grow revenue near management's "north star" target of 30%, which it notes is much faster than most companies in the IT space, "let alone the market as a whole," while margins are also expanding.
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Raymond James
NULL
to
Outperform
initiated
$274 -> $250
2025-12-15
Reason
Raymond James
Price Target
$274 -> $250
2025-12-15
initiated
NULL
to
Outperform
Reason
Raymond James assumed coverage of Snowflake with an Outperform rating with a price target of $250, down from $274. Snowflake is transitioning from a cloud data warehouse into a broader data, application, and AI platform, positioning the company to capture a larger share of enterprise workloads, and as AI adoption accelerates, platform convergence increases, and open data architectures become standard, Snowflake has multiple growth drivers and ways to expand its strategic relevance with large customers, the analyst tells investors in a research note. While competitive pressures from other leading database vendors remain central debates, Snowflake's platform evolution, expanding use cases, and potential for more durable consumption trends provide a credible path to sustaining premium growth and margins, the firm added.
Citi
Buy
downgrade
$310 -> $300
2025-12-08
Reason
Citi
Price Target
$310 -> $300
2025-12-08
downgrade
Buy
Reason
Citi lowered the firm's price target on Snowflake to $300 from $310 and keeps a Buy rating on the shares. The company reported a lower fiscal Q3 beat relative to expectations but issued strong Q4 sales guidance, the analyst tells investors in a research note.
About SNOW
Snowflake Inc. is a data cloud and artificial intelligence company. Its platform is the technology that powers the AI Data Cloud, enabling customers to consolidate data into a single source of truth to drive meaningful insights, apply artificial intelligence (AI) to solve business problems, build data applications, and share data and data products. It provides its platform through a customer-centric, and consumption-based business model. Its cloud-native architecture consists of three independently scalable but logically integrated layers across compute, storage, and cloud services. The compute layer provides dedicated resources to enable users to simultaneously access common data sets for many use cases with minimal latency. The storage layer ingests massive amounts and varieties of structured, semi-structured, and unstructured data to create a unified data record. Its ClearQuery platform allows users to rapidly search, explore, and analyze their data using natural language queries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
