Snowflake (NYSE:SNOW) Stock Price Down 5.3% – Here’s Why

Snowflake Inc. (NYSE:SNOW) dropped 5.3% on Thursday . The stock traded as low as $156.08 and last traded at $156.5530. Approximately 7,824,824 shares were traded during mid-day trading, an increase of 41% from the average daily volume of 5,564,372 shares. The stock had previously closed at $165.29.

Key Snowflake News

Here are the key news stories impacting Snowflake this week:

• Positive Sentiment: Snowflake announced a multi?year, roughly $200M partnership with OpenAI to embed advanced models into Snowflake’s platform — a revenue opportunity if customers run models on Snowflake data and pay for compute/consumption. OpenAI partnership
• Positive Sentiment: Enterprise adoption example — United Rentals has rolled out a Snowflake?built Business Intelligence AI agent across 1,600+ branches, showing near?term real customer use of Snowflake Intelligence that could increase consumption. United Rentals deployment
• Positive Sentiment: New AI product moves (Cortex Code, Semantic View Autopilot, Postgres integrations) broaden use cases and reduce friction for customers — strategically supportive of longer?term consumption growth if execution follows through. Fool on Snowflake product momentum
• Neutral Sentiment: Market commentary is mixed: analysts and stories acknowledge the strategic logic of model partnerships but emphasize investors want clear evidence of profitable consumption growth rather than press releases. Market analysis on OpenAI deal
• Negative Sentiment: Zacks Research downgraded Snowflake from “hold” to “strong sell” — a fresh sell?side hit that can accelerate outflows and push momentum traders to reduce exposure. Zacks downgrade
• Negative Sentiment: Johnson Fistel announced an investigation into whether Snowflake or its officers complied with securities laws — legal/settlement risk increases uncertainty and can pressure the stock until resolved. Johnson Fistel investigation notice
• Negative Sentiment: Insider selling: EVP Christian Kleinerman disclosed a sale of 10,000 shares — insider sales can be interpreted as added near?term supply and raise short?term concern even if not uncommon. SEC Form 4 — Kleinerman sale
• Negative Sentiment: Overall price action: analysts and reports note SNOW is falling more than the broader market amid profit?taking and skepticism about near?term margins if customers run large models — that dynamic is amplifying the move lower. Zacks on SNOW downside

Wall Street Analysts Forecast Growth

Several equities analysts have commented on SNOW shares. Jefferies Financial Group set a $300.00 price target on Snowflake in a report on Monday, November 24th. Argus upgraded Snowflake from a “hold” rating to a “buy” rating and set a $300.00 target price for the company in a research note on Thursday, January 8th. Deutsche Bank Aktiengesellschaft lifted their price target on shares of Snowflake from $250.00 to $275.00 and gave the stock a “buy” rating in a research note on Thursday, December 4th. Cantor Fitzgerald increased their price objective on shares of Snowflake from $275.00 to $278.00 and gave the company an “overweight” rating in a research note on Thursday, December 4th. Finally, DA Davidson reiterated a “buy” rating and set a $300.00 target price on shares of Snowflake in a research report on Friday, January 30th. Two research analysts have rated the stock with a Strong Buy rating, thirty-four have given a Buy rating, four have assigned a Hold rating and four have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $275.58.

Snowflake Trading Down 5.3%

The company’s fifty day moving average price is $219.07 and its two-hundred day moving average price is $227.23. The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 1.07. The company has a market cap of $53.57 billion, a price-to-earnings ratio of -38.75 and a beta of 1.14.

Snowflake (NYSE:SNOW) last released its quarterly earnings results on Wednesday, December 3rd. The company reported $0.35 EPS for the quarter, topping analysts’ consensus estimates of $0.31 by $0.04. Snowflake had a negative return on equity of 45.91% and a negative net margin of 30.76%.The business had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.18 billion. During the same period in the prior year, the company earned $0.20 EPS. Snowflake’s revenue for the quarter was up 28.7% on a year-over-year basis. Research analysts expect that Snowflake Inc. will post -2.36 earnings per share for the current year.

Insider Buying and Selling

In related news, CAO Emily Ho sold 1,072 shares of Snowflake stock in a transaction dated Tuesday, December 23rd. The stock was sold at an average price of $223.63, for a total value of $239,731.36. Following the completion of the transaction, the chief accounting officer directly owned 43,809 shares of the company’s stock, valued at $9,797,006.67. The trade was a 2.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Christian Kleinerman sold 10,000 shares of the company’s stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $197.09, for a total transaction of $1,970,900.00. Following the transaction, the executive vice president owned 461,351 shares in the company, valued at approximately $90,927,668.59. This trade represents a 2.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 613,681 shares of company stock valued at $135,245,745 in the last 90 days. 6.80% of the stock is owned by corporate insiders.

Institutional Trading of Snowflake

Several hedge funds have recently modified their holdings of the stock. Norges Bank bought a new position in Snowflake in the 2nd quarter worth approximately $944,895,000. Winslow Capital Management LLC acquired a new stake in shares of Snowflake in the 2nd quarter valued at $725,667,000. Jennison Associates LLC lifted its stake in shares of Snowflake by 27.7% during the fourth quarter. Jennison Associates LLC now owns 11,603,302 shares of the company’s stock valued at $2,545,300,000 after acquiring an additional 2,519,413 shares during the period. Coatue Management LLC acquired a new position in shares of Snowflake during the third quarter valued at $441,277,000. Finally, American Century Companies Inc. boosted its holdings in Snowflake by 233.3% in the third quarter. American Century Companies Inc. now owns 2,104,925 shares of the company’s stock valued at $474,766,000 after acquiring an additional 1,473,354 shares during the last quarter. 65.10% of the stock is owned by institutional investors.

About Snowflake

Snowflake Inc is a cloud-native data platform company that provides a suite of services for storing, processing and analyzing large volumes of data. Its core offering, often described as the Snowflake Data Cloud, combines data warehousing, data lake and data sharing capabilities in a single managed service delivered across major public cloud providers. The platform is designed to support analytics, data engineering, data science and application workloads with a focus on scalability, concurrency and simplified administration.

Key products and capabilities include a multi-cluster, shared-data architecture that separates compute from storage; continuous data ingestion and streaming; support for structured and semi-structured data formats; tools for data governance, security and compliance; and developer frameworks for building data applications.