Snowflake's Stock Declines Amid Broader Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy SNOW?
Source: Benzinga
Snowflake Inc. experienced a decline of 3.50% in regular trading, hitting a 20-day low as the Nasdaq-100 fell by 1.16% and the S&P 500 decreased by 0.07%.
Despite the launch of its Cortex Code AI coding agent aimed at enhancing enterprise data projects, the stock's performance was negatively impacted by broader market weakness. The Cortex Code is designed to help clients like Braze and LendingTree accelerate their data and AI project transitions, significantly improving development efficiency and addressing market demands for high-quality solutions.
The implications of this launch are significant for Snowflake, as it strengthens its competitive position in the AI space and reinforces its role in managing the enterprise data lifecycle. However, the current market conditions have overshadowed these advancements, leading to a notable decline in stock price.
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Analyst Views on SNOW
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
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 168.430
Low
237.00
Averages
285.29
High
325.00
Current: 168.430
Low
237.00
Averages
285.29
High
325.00
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.
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See More
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- Significant Revenue Growth: The company reported annualized revenue exceeding $5.4 billion for the January quarter, marking a 65% year-over-year increase while generating free cash flow, indicating the sustainability and profitability of its business model.
- AI Product Drive: Databricks' AI products now generate $1.4 billion in annualized revenue, accelerating the company's overall expansion with a projected 50% growth rate, further solidifying its leadership position in the data analytics sector.
- Intensifying Market Competition: With the release of its Lakehouse database, competition has intensified, particularly against rivals like Snowflake, which has a market cap of approximately $58 billion, demonstrating Databricks' efforts to expand its market share while challenging traditional software companies.
See More
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- Massive Funding Round: Databricks announced it has successfully raised $5 billion in funding and secured $2 billion in new debt capacity, achieving a valuation of $134 billion, reflecting strong market confidence in its growth potential.
- Significant Revenue Growth: The company reported annualized revenue exceeding $5.4 billion for the January quarter, marking a 65% year-over-year increase, while also delivering free cash flow over the past year, indicating the sustainability and profitability of its business model.
- IPO Readiness: CEO Ali Ghodsi stated that Databricks is prepared to go public when the time is right, a declaration that could attract more investor interest, especially against the backdrop of active tech IPOs.
- AI Revenue Contribution: Databricks' AI products now generate $1.4 billion in annualized revenue, showcasing strong market demand in the intersection of data analytics and AI, further solidifying its position in a competitive landscape.
See More
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- AI Agent Deployment: On February 4, Snowflake announced that United Rentals rolled out a new AI agent based on Snowflake Intelligence across over 1,600 branches, enabling sales and operational teams to quickly obtain actionable insights through natural language queries, thereby enhancing work efficiency.
- Accelerating AI Innovation: United Rentals is leveraging Snowflake Cortex Code to expedite the testing and development of additional AI agents, indicating Snowflake's crucial role in driving customer AI innovation and further solidifying its market position.
- Data Cloud Ecosystem: Snowflake's cloud data warehousing software supports various use cases, including data lakes, data engineering, and data sharing, helping customers break down data silos to maximize data value and strengthen its competitive edge in data management.
See More
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- Market Panic and Rebound Opportunities: Since December 10, the iShares Expanded Tech-Software Sector ETF has fallen over 22%, officially entering bear market territory, yet Wall Street analysts believe the sell-off may be overdone, indicating some software stocks still present compelling opportunities.
- Optimistic Outlook for Datadog: The cloud monitoring and security software company Datadog has an average price target implying a 61% upside; despite its stock plummeting from nearly $200 in November to around $120, revenue is projected to grow by 20% by 2026.
- Snowflake's AI Strategy: Although Snowflake faces profitability challenges and high valuations, its average price target suggests a 63% upside, with the CEO stating that AI applications will be more nuanced, and a recent $200 million deal with OpenAI highlights its relevance in the AI space.
- Microsoft's AI Potential: Microsoft has an average price target indicating a 47% upside; despite a 23% decline in stock price over the past six months, its AI assistant Copilot boasts 15 million paid users, showcasing its significant potential in the AI landscape.
See More
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- Snowflake Performance Outlook: Bank of America maintains a Buy rating on Snowflake with a $275 price target, anticipating its product revenue to grow at 28% year-over-year, significantly benefiting from surging data demand driven by AI data clouds.
- MongoDB Growth Potential: MongoDB's Atlas revenue grew 30% year-over-year in F3Q26, with analysts believing its application in AI workloads will further drive long-term market share growth, setting a price target of $500.
- Datadog Market Confidence: Despite competitive pressures, Bank of America analysts assert that Datadog's observability is critical, expecting a rebound in its stock price with a target of $215, emphasizing that non-AI native growth is a key metric to watch.
- JFrog AI Beneficiary: JFrog is seen as a beneficiary of AI developments, with analysts suggesting that the recent stock pullback creates a buying opportunity, targeting $74, as its cloud revenue grew 50% year-over-year in Q3 2025, indicating strong market demand.
See More
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- Securities Fraud Investigation: Pomerantz LLP is investigating whether Snowflake and its executives have engaged in securities fraud or other unlawful business practices, which could undermine investor confidence and lead to legal repercussions.
- Earnings Report Impact: On February 28, 2024, Snowflake announced its fourth-quarter and full fiscal year 2024 results, with management noting changes in customer behavior and product-related developments adversely affecting the company's outlook, potentially leading to future performance declines.
- Stock Price Plunge: Following the earnings announcement, Snowflake's stock price fell by $41.72, or 18.14%, closing at $188.28 on February 29, 2024, reflecting market concerns regarding the company's future prospects.
- Legal Consequences: Pomerantz LLP, recognized for its expertise in securities litigation, has secured multimillion-dollar settlements for victims; if the investigation yields negative findings, Snowflake may face significant financial and reputational damage.
See More
