SNOW Should I Buy
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Snowflake Inc. is not a strong buy at this moment for a beginner investor with a long-term focus. While the company has solid growth potential driven by AI momentum and improving forward-looking indicators, the current technical setup is bearish, and the pre-market price trend is negative. Additionally, the financial performance shows declining net income and EPS, which may concern long-term investors. It is better to wait for a more favorable entry point or clearer bullish signals.
The technical indicators for SNOW are bearish. The MACD is negatively expanding, the RSI is neutral at 34.717, and the moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its key support level (S1: 161.129), with resistance at R1: 179.198. The pre-market price is down 1.37%, reflecting weak sentiment.
Strong Q4 revenue growth of 30.12% YoY.
AI momentum driving product growth acceleration.
Analysts maintain a Buy rating with a positive outlook for FY
Record new logo quarter and robust RPO performance.
Declining net income (-5.47% YoY) and EPS (-9.09% YoY).
Gross margin slightly decreased (-0.35% YoY).
Class action lawsuit alleging undisclosed negative revenue impacts.
Bearish technical indicators and weak pre-market performance.
In Q4 2026, Snowflake reported revenue growth of 30.12% YoY to $1.28 billion. However, net income dropped by 5.47% YoY to -$309.55 million, and EPS declined by 9.09% YoY to -0.9. Gross margin slightly decreased to 66% (-0.35% YoY).
Analysts maintain a Buy rating on Snowflake, but most have lowered their price targets (ranging from $205 to $255). They highlight strong Q4 performance, AI-driven growth potential, and a solid FY27 outlook. However, concerns about conservative guidance and muted market reactions persist.
