Stock Price & Analysis

Based on the provided data and recent analyst coverage, here's a comprehensive analysis of SNOW stock:

Technical Analysis

The stock is currently trading at $229.34, showing a short-term uptrend with recent resistance around $235. The stock has formed higher lows and higher highs since January 2025, indicating bullish momentum. However, it's currently approaching overbought territory with RSI at 47.14.

Fundamental Analysis

Current Valuation Metrics:

• P/S Ratio: 22.86x
• P/B Ratio: 12.61x
• No P/E ratio due to negative earnings

Recent Analyst Coverage

• BTIG upgraded to Buy with $220 PT
• Wolfe Research upgraded to Outperform with $235 PT
• Barclays maintained Buy rating with $190 PT
• Consensus price target: $198.66, implying 12.4% upside potential

Growth Catalysts

1. AI Integration & Infrastructure:

• Investing heavily in GPU infrastructure for AI applications
• 30% of customer base currently using AI solutions, indicating significant growth potential
• Total addressable market expected to double to $342 billion by 2028

2. Strong Business Momentum:

• 55% YoY increase in remaining performance obligations (RPO)
• Current RPO stands at $5.7 billion vs expected FY2025 revenue of $3.6 billion

Risk Factors

• Expensive valuation at 22.86x sales
• Margin pressure due to AI infrastructure investments
• Expected 29% earnings decline in FY2025 before projected 42% growth in FY2026

Buy/Sell Recommendation Given the strong analyst consensus, significant AI growth potential, and robust RPO metrics, SNOW presents a compelling BUY opportunity despite its premium valuation. The recent pullback from $234 provides a reasonable entry point for long-term investors focused on AI and cloud computing growth.

Based on the provided references and data, here is the price prediction analysis for Snowflake (SNOW) stock in 2025:

Technical Analysis

The current price of SNOW is around $177.88 as of February 24, 2025. The stock has shown significant volatility in recent months, with strong support around $150 and resistance near $200.

Price Target Analysis for 2025

According to multiple analyst forecasts and predictions:

• Conservative target: $175-185 range
• Moderate target: $190-210 range
• Aggressive target: $220-235 range

The consensus price target from 40 Wall Street analysts is $193.43, suggesting an 8.80% upside from current levels.

Key Growth Drivers

1. AI Infrastructure Investment

• Continued investment in GPU infrastructure for AI applications
• Growing adoption of AI solutions among customers (currently 30% of customer base)
• Expanding total addressable market expected to double to $342 billion by 2028

2. Strong Revenue Growth

• 55% year-over-year increase in remaining performance obligations (RPO)
• RPO stands at $5.7 billion vs expected revenue of $3.6 billion for fiscal 2025
• Cross-selling opportunities with AI offerings to existing customers

Specific Price Prediction

Based on the analysis of multiple forecasts and growth catalysts, SNOW stock is likely to reach:

• Q2 2025: $190-200 range
• Q3 2025: $200-220 range
• Year-end 2025: $235 (most likely scenario)

This prediction is supported by:

• Strong AI adoption trends
• Expanding market opportunities
• Improving margins from AI monetization
• Growing customer base and consumption rates

Risk Factors

• Valuation concerns (currently trading at 17x sales)
• Competition in cloud data platforms
• Market volatility and tech sector sentiment
• Execution risks in AI strategy

The S1 support level for SNOW Stock is $166.41 ,The R1 resistant level for SNOW Stock is $192.19.

As of the end of day on 2025-02-26, the price of SNOW Stock was $168.3.

The target price for SNOW Stock according to analyst rating is 205.04, with the highest price target at 235.00 and the lowest at 188.00. Analysts have a Strong Buy rating on SNOW Stock overall.

The market cap of SNOW is $54.2B.

Based on the provided data and recent market activity, here's a comprehensive analysis of whether SNOW is overvalued:

Technical Analysis

Valuation Assessment

SNOW currently trades at elevated multiples compared to industry averages, with a price-to-sales ratio of 17x - more than double the technology sector average. The forward P/E ratio of 197x also indicates a significant premium.

Growth and Profitability

• Revenue Growth: Q4 2024 showed 31.8% YoY growth to $774.7M
• Gross Margin: Improved to 68.79% in Q4 2024 from 65.08% year ago
• Net Margin: Still negative but improving from -35.23% to -21.93% YoY

Market Position and Future Outlook

The company's total addressable market is expected to double to $342B by 2028, driven by:

• Strong AI infrastructure investments
• 55% YoY increase in remaining performance obligations (RPO)
• Only 30% of customer base currently using AI solutions, indicating significant growth potential

Conclusion

While SNOW shows high valuation metrics, the stock is not necessarily overvalued given its:

1. Improving margins and operational efficiency
2. Strong market position in cloud data platforms
3. Significant AI growth potential with untapped customer base
4. Robust RPO of $5.7B versus expected FY2025 revenue of $3.6B
5. Clear path to profitability with improving net margins

Snowflake Inc. is a Data Cloud company. The Company’s platform is the technology that powers the Data Cloud, enabling customers to consolidate data into a single source of truth to drive meaningful business insights, build data applications, and share data and data products. Its platform unifies data and supports a variety of workloads, including data warehousing, data lakes, and Unistore, as well as collaboration, data engineering, cybersecurity, data science and machine learning, and application development. The Company has developed technology across its platform, including managed service, storage, query capabilities, compute model, data sharing, global infrastructure, and integrated security. The Company also provides frictionless and governed data access so users can securely share data inside and outside of their organizations, generally without copying or moving the underlying data.

Based on the available data and market analysis, Snowflake (SNOW) stock is projected to reach approximately $350-400 by 2030, driven by its expanding AI infrastructure investments and expected doubling of total addressable market to $342 billion by 2028. The company's strong remaining performance obligations (RPO) growth of 55% year-over-year and increasing AI solution adoption among customers (currently only 30% penetration) suggest substantial growth potential. Recent analyst consensus shows a strong buy rating with a near-term price target of $198.66, indicating a clear upward trajectory for the next several years.

SNOW has a total of 7004 employees.