Snowflake to Acquire Observe for $1 Billion to Enhance AI Data Cloud
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2026
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Source: Benzinga
- Strategic Acquisition: Snowflake announced plans to acquire Observe for approximately $1 billion, aiming to embed AI-driven observability into its AI Data Cloud, thereby enhancing its market position in IT operations management.
- Cost Efficiency Improvement: By integrating Observe's platform, Snowflake will enable enterprises to ingest, store, and analyze full-fidelity telemetry data at a lower cost, significantly improving operational efficiency.
- Market Transformation: This acquisition signifies a shift from alert-based monitoring to automated troubleshooting, combining Observe's AI Site Reliability Engineer with Snowflake's data infrastructure to drive rapid growth in the IT operations management market.
- Technology Standardization: The new platform will rely on open standards such as Apache Iceberg and OpenTelemetry, allowing Snowflake to handle massive telemetry volumes from modern AI agents and production-scale applications, enhancing operational visibility and meeting customer demands for complex AI applications.
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: 211.270
Low
237.00
Averages
285.29
High
325.00
Current: 211.270
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.
