Snowflake (SNOW) Stock on December 9, 2025: Is the Post‑Earnings Dip a Buying Opportunity?

Snowflake Inc. (NYSE: SNOW) has spent the past week digesting a sharp post‑earnings sell‑off, even as its AI‑driven growth story and free‑cash‑flow (FCF) guidance continue to impress Wall Street.

As of late trading on December 9, 2025, Snowflake shares change hands around $222 per share, giving the company a market capitalization in the mid‑$70 billion range. ^[1] That’s roughly 15–20% below last week’s pre‑earnings high near $265, but still leaves the stock up strongly for 2025 — more than 60–70% year to date, according to multiple reports. ^[2]

Below is a comprehensive look at today’s key news (09.12.2025), recent earnings, analyst forecasts, and strategic developments shaping Snowflake’s stock.

1. Snowflake Stock Today: Price Action & Context

• Latest price (Dec 9, 2025): about $222 per share.
• Recent closes: data from StockAnalysis shows SNOW closed at $265.00 on Dec 3 (before earnings), then plunged to $234.77 on Dec 4 (‑11.4%), and slipped further to the mid‑$220s over the following sessions. ^[3]
• Market cap: multiple sources put Snowflake’s value between $75–77 billion in early December. ^[4]

The market’s message has been clear:

• Q3 FY26 results were strong, but
• growth and margin guidance didn’t wow investors, triggering a sharp reset in expectations.

Despite the pullback, Snowflake remains one of the highest‑valued software names in the market, with a revenue multiple in the high teens based on roughly $4.4–4.6 billion of expected FY26 revenue. ^[5]

2. Q3 FY26 Earnings: Strong Numbers, Softer Outlook

Snowflake reported results for its third quarter of fiscal 2026 (period ended October 31, 2025) on December 3, 2025.

Headline results

According to Snowflake’s filings and multiple news outlets: ^[6]

• Total revenue:$1.21 billion, +29% year over year, beating analyst estimates around $1.18 billion.
• Product revenue:$1.16 billion, also +29% YoY.
• Adjusted EPS:$0.35, ahead of the $0.31 consensus.
• Net loss: narrowed to about $293.9 million, from $324.2 million a year ago. ^[7]
• Product gross margin: around 76% on a non‑GAAP basis, with GAAP gross margin in the low 70s. ^[8]

Operational metrics underline Snowflake’s continued momentum with large enterprises:

• Net revenue retention:125%, meaning existing customers, on average, spent 25% more than a year earlier. ^[9]
• Remaining performance obligations (RPO): about $7.88 billion, up 37% YoY. ^[10]
• Large customers:688 customers generating over $1 million in trailing 12‑month product revenue, and 766 Forbes Global 2000 customers. ^[11]

Those are textbook “beat” numbers on revenue and earnings. So why did the stock tank?

The guidance that spooked investors

The answer lies in forward guidance:

• Q4 FY26 product revenue guidance:$1.195–$1.20 billion, implying 27% YoY growth—slightly ahead of Street estimates near $1.18 billion, but not the 30%+ acceleration many growth investors were hoping for. ^[12]
• Full‑year FY26 product revenue guidance: raised to $4.446 billion, up 28% YoY and above prior guidance of $4.4 billion. ^[13]
• Margin targets: Snowflake reiterated non‑GAAP product gross margin of ~75%, non‑GAAP operating margin of 9%, and a free cash flow (FCF) margin of ~25% for the full year. ^[14]

In other words, Snowflake is growing fast and throwing off cash, but:

• Growth is decelerating from its earlier hyper‑growth phase.
• The Q4 guide was only modestly above expectations.
• Some investors worry that heavy AI investments could pressure margins. ^[15]

That combination led to an ~11% one‑day drop on December 4 and further weakness over the next few sessions, even as analysts broadly praised the underlying fundamentals. ^[16]

3. AI, Anthropic, AWS & Ataccama: The Strategic Story Behind the Numbers

The most important piece of the Snowflake thesis is no longer just “cloud data warehouse.” It’s AI Data Cloud – how Snowflake sits at the center of enterprise data and AI workflows.

$200 million Anthropic partnership

Snowflake recently announced a $200 million multi‑year partnership with Anthropic, maker of the Claude family of AI models. ^[17]

Key points:

• Anthropic’s models are brought directly into Snowflake Cortex AI, the company’s AI layer.
• Claude powers Snowflake Intelligence, an “enterprise intelligence agent” that sits on top of customers’ data.
• The deal cements Snowflake as a distribution and execution layer for advanced AI models within enterprise data environments.

This is strategically significant: instead of customers copying data out to external AI services, the AI comes to the data inside Snowflake, reducing friction, latency and security concerns.

AWS partnership & marketplace scale

Snowflake has also deepened its relationship with Amazon Web Services (AWS):

• A company blog highlights growing generative AI solutions jointly delivered with AWS, including Snowflake Intelligence as a “day zero” launch partner for new AWS AI capabilities. ^[18]
• Snowflake announced it has more than doubled AWS Marketplace growth year on year, surpassing $2 billion in cumulative sales via the marketplace—a strong signal of demand from cloud‑native enterprises. ^[19]

Ataccama investment: betting on “data trust”

On December 9, new AI‑centric news dropped: Snowflake Ventures has made a strategic equity investment in Ataccama, a data quality and governance specialist. ^[20]

CRN reports that: ^[21]

• Ataccama’s tools enhance data quality, lineage, governance and observability, and are tightly integrated with the Snowflake AI Data Cloud.
• The investment extends an existing alliance and aims to deliver “trusted, explainable data” for AI agents and advanced analytics.
• Ataccama’s platform helps power Snowflake’s Medallion architecture (Bronze–Silver–Gold layers of data quality) and enhances Snowflake Cortex AI workflows.

In simple terms: if AI is the engine, high‑quality governed data is the fuel. Snowflake is buying and partnering its way into being the platform where that fuel lives.

Snowflake’s own AI outlook

Snowflake’s 2026 Data + AI Predictions report, released last week, emphasizes the rise of AI agents, growing demand for governed data for AI, and the shift to domain‑specific AI applications built directly on corporate data. ^[22]

Taken together, these moves show a company leaning hard into AI – not as a buzzword, but as a core architectural bet.

4. Today’s Key News on December 9, 2025

Beyond the macro story, December 9 itself has been busy for Snowflake news.

4.1 Institutional buying: Natixis, Bank of Nova Scotia, Ossiam

Several institutional investors disclosed large increases in Snowflake positions:

• Natixis boosted its Snowflake stake by 922.8% in Q2, to 65,890 shares worth about $14.7 million, according to MarketBeat’s December 9 note. ^[23]
• Bank of Nova Scotia raised its holdings by 570.7%, now owning 220,751 shares worth roughly $49.4 million, or about 0.07% of Snowflake’s shares outstanding. ^[24]
• Ossiam, a European asset manager, disclosed the purchase of 17,717 Snowflake shares, also highlighted in a MarketBeat alert that same day. ^[25]

These filings underscore ongoing institutional interest even after the post‑earnings sell‑off. MarketBeat also notes that institutional investors and hedge funds collectively own around 65% of Snowflake’s float. ^[26]

4.2 Analyst moves: Slight PT trims, but mostly bullish

On the research side:

• Citigroup maintained its “Buy” rating but reduced its price target to $300 from $310, citing updated assumptions but keeping a constructive stance. ^[27]
• A MarketBeat summary notes a cluster of recent positive ratings, including: ^[28]
  • Deutsche Bank: target raised to $275, “Buy”.
  • BTIG Research:“Buy”, $312 target.
  • Scotiabank:“Outperform”.
  • Jefferies:$300 price objective.
• A separate forecast tracked by QuiverQuant shows Piper Sandler’s Hannah Rudoff reiterating an Outperform‑style stance with a $285 price target. ^[29]

Net‑net, December 9 brings fine‑tuning, not capitulation, from analysts. Targets are nudged, not slashed, and ratings remain largely positive.

4.3 Insider Form 144 filings: small, planned sales

Two insider selling filings hit the tape today:

• Co‑founder Benoît Dageville filed a Form 144 indicating an intent to sell 814 shares of Snowflake under a pre‑arranged 10b5‑1 trading plan, with an approximate sale date of December 9, 2025. ^[30]
• EVP Christian Kleinerman filed a separate Form 144 to sell 548 shares, tied to restricted stock vested on December 8, 2025 as part of compensation. ^[31]

Both filings represent tiny fractions of Snowflake’s roughly 342 million shares outstanding and are characterized as pre‑planned or compensation‑linked activity, making them low‑impact signals in isolation. ^[32]

4.4 FCF‑driven upside arguments

Coverage from financial outlets over the last 24–48 hours emphasizes Snowflake’s strong free‑cash‑flow profile:

• An analysis syndicated via Yahoo Finance notes that Snowflake’s FCF margin guidance of ~25% could justify a price target roughly 20–22% above recent trading levels, assuming the company meets its long‑term FCF commitments. ^[33]

In other words, while GAAP earnings remain negative, the cash economics of the business are already attractive — an important point for long‑term investors.

5. Wall Street Forecasts: What Do Analysts Expect for SNOW?

Across major data providers, analysts remain broadly bullish on Snowflake, though opinions vary on valuation.

Consensus price targets

Different aggregators provide slightly different averages, but they all sit well above today’s price:

• MarketBeat:
  • Average 12‑month PT:$274.78.
  • High:$325, Low:$210.
  • Implied upside: ~23–24% from the low‑$220s. ^[34]
• StockAnalysis.com:
  • 43 analysts cover SNOW.
  • Consensus rating: “Strong Buy”.
  • Average target: $268.51, with low $185 / high $325, implying around 21% upside. ^[35]
• TipRanks:
  • 33 analysts in the last three months.
  • Average target: $288.53, high $325 / low $237.
  • Implied upside: ~26% based on a recent price around $229. ^[36]
• MarketWatch estimates:
  • Average recommendation:“Buy”.
  • Average target price: about $288 based on 49 ratings. ^[37]
• Benzinga ratings overview:
  • Consensus target around $276.16.
  • High at $325 (JMP Securities) and low in the low‑$220s (Bernstein). ^[38]

If you average across sources, Wall Street is effectively saying:

Snowflake should be worth somewhere in the $270–290 range over the next 12 months – roughly 20–30% above where it trades today – if it delivers on growth and margin guidance.

Naturally, analysts can be wrong, and their targets often move with the stock, but they provide a clear snapshot of current professional sentiment: cautiously bullish to very bullish.

6. Fundamentals & Valuation: High Growth, High Expectations

From a fundamental perspective, Snowflake sits firmly in the “quality growth, premium multiple” bucket.

Growth & profitability

Based on company disclosures and third‑party data: ^[39]

• LTM revenue: roughly $4.1–4.4 billion, with revenue growing around 20–30% year over year.
• 5‑year revenue CAGR: estimated around 55–60%. ^[40]
• Gross margin: mid‑60s on a GAAP basis, mid‑70s on a non‑GAAP basis. ^[41]
• Net margin (GAAP): still around ‑30%, reflecting heavy R&D and stock‑based compensation. ^[42]
• Free cash flow margin:high‑teens trailing, with a 25% target for FY26. ^[43]

This profile—strong growth, negative GAAP earnings but healthy FCF—is classic for high‑end cloud software players.

Valuation

Various sources peg Snowflake’s market cap around $75–77 billion in December 2025. On that base and with LTM revenue a bit above $4 billion, Snowflake trades at roughly:

• Price‑to‑sales (P/S):high‑teens, around 17–19x LTM revenue. ^[44]

Some valuation models argue the stock is overvalued:

• A fundamental analysis from ValueSense estimates an intrinsic value near $114 per share, implying the stock could be 40%+ above their fair‑value estimate at current levels. ^[45]

Others, especially growth‑oriented analysts, see the combination of high‑margin growth + AI optionality as justification for a premium multiple.

Whichever camp you fall into, it’s hard to deny that Snowflake is priced for continued execution. Missteps in growth, margins or competitive positioning could quickly compress that multiple.

7. Bull vs Bear: How Investors Are Framing SNOW Post‑Earnings

Bull case highlights

Supporters of Snowflake typically point to:

1. Mission‑critical role in the AI era
   Snowflake’s platform is becoming a central data layer for AI applications, reinforced by partnerships with Anthropic, AWS, Google’s Gemini, Ataccama and large integrators like Accenture. ^[46]
2. Sticky, expanding customer base
   • Net revenue retention of 125%
   • Hundreds of million‑dollar‑plus customers
   • Strong presence across the Forbes Global 2000 ^[47]
3. Improving cash‑flow profile
   The company is on track to deliver ~25% FCF margins while still growing revenue nearly 30%—a combination few software names can match. ^[48]
4. Large and growing TAM
   Demand for data warehousing, governance, analytics and AI workloads remains robust, even in a choppy macro environment. Data and AI are seen as long‑duration trends, not fads. ^[49]
5. Institutional & analyst support
   Recent institutional buying (Natixis, Bank of Nova Scotia, Ossiam) and a cluster of Buy‑rated analyst reports following the Q3 call point to ongoing confidence in the story. ^[50]

Bear case & key risks

Skeptics—and even some bulls—flag several risks:

1. Growth deceleration
   Product revenue growth of 29% (Q3) and a 27% guide for Q4 represent a clear deceleration from earlier years, raising questions about the long‑term growth ceiling. ^[51]
2. Rich valuation
   With a high‑teens P/S multiple and negative GAAP earnings, Snowflake’s valuation leaves little room for error. Any further slowdown in growth could compress multiples quickly. ^[52]
3. Competition from Databricks and hyperscalers
   Snowflake faces aggressive competition from Databricks—which is also deeply embedded in AI and reportedly pursuing a high private‑market valuation—as well as from native offerings from AWS, Azure and Google Cloud. ^[53]
4. Heavy stock‑based compensation & GAAP losses
   Net margins remain deeply negative, and stock‑based compensation is substantial, diluting existing shareholders. ^[54]
5. Insider selling optics
   While recent Form 144s appear routine and small, continued insider selling can weigh on sentiment if it persists in large volumes. ^[55]

8. Is Snowflake Stock a Buy, Hold, or Sell Right Now?

From a news and analysis standpoint as of December 9, 2025:

• The fundamental story remains intact:
  • ~30% revenue growth
  • Premium gross margins
  • Rising free cash flow
  • Expanding AI and data‑governance ecosystem
• The market reaction reflects:
  • Disappointment that growth isn’t re‑accelerating above 30%+,
  • Concerns about how much AI investment is needed,
  • A reset of very high expectations baked into the stock.
• Wall Street mostly still sees 20–30% upside over 12 months, but this is conditional on Snowflake hitting or beating its own targets and continuing to prove that its AI investments drive incremental, profitable demand. ^[56]

For growth‑oriented investors comfortable with volatility and premium valuations, the post‑earnings dip may look like an opportunity to accumulate shares in a company with a central role in enterprise AI and data.

For more conservative or value‑oriented investors, the combination of:

• decelerating growth,
• persistent GAAP losses, and
• a lofty revenue multiple

may justify a “watchlist but don’t chase” stance until either the price or the fundamentals (or both) become more compelling.

Nothing in the latest data suggests a broken business. Instead, Snowflake looks like a strong franchise being repriced from “AI darling at any cost” toward a more execution‑dependent premium growth stock.

9. What to Watch Next

Investors following Snowflake over the coming months may want to focus on:

• Product revenue growth trajectory – does it stabilize in the high‑20s, or move back toward 30%+?
• Adoption of Snowflake Intelligence, Cortex AI, and Anthropic‑powered features – concrete AI‑driven workloads and revenue will be critical proof points. ^[57]
• RPO and net revenue retention trends – continued strength here would support the long‑term growth runway. ^[58]
• Margin progress – can Snowflake maintain or expand its 25% FCF margin while investing heavily in AI and partnerships? ^[59]
• Competitive dynamics – especially new product moves from Databricks and the cloud hyperscalers, and how often Snowflake is chosen as the primary AI data platform in large deals. ^[60]

Important note

This article is for informational and educational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any security. Always do your own research and consider consulting a licensed financial advisor before making investment decisions.

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