NEW YORK, April 11, 2026, 04:06 PM EDT.
Snowflake closed out Friday, April 10, at $121.11—a sharp 8.4% drop from Thursday’s $132.24 finish—as investors stepped up their exit from enterprise software stocks. Fresh worries about AI tools eating into demand for legacy software sent shares tumbling. That followed Thursday’s 11.72% plunge for Snowflake, a day when the S&P 500 actually gained 0.62%.
The sharp drop underscores how Wall Street keeps adjusting valuations for software names exposed to “agentic AI”—the kind that handles complex tasks with minimal human input—even if forecasts at individual firms haven’t worsened. Snowflake, for example, bases its model on customer usage of storage and computing power, not locked-in subscriptions, yet shares are now hovering just above their 52-week low at $118.30. Reuters
U.S. software stocks took a hit Thursday, following a fresh Anthropic update that stirred up more anxiety about industry upheaval, Reuters said. The S&P 500 Software and Services Index has now dropped 25.5% for the year as of Thursday’s close. Among notable movers: Cloudflare, Okta, CrowdStrike, and SentinelOne shed between 4.9% and 6.5%. Adobe, Salesforce, and Intuit also slipped, falling anywhere from 3.7% to 6.8%.
Snowflake shares slid 10.2% Friday afternoon, according to TradingView’s StockStory feed, which flagged a “sector-wide repricing” as investors fretted over the threat posed by new AI agents from Anthropic and OpenAI to the SaaS business model—where recurring subscriptions are the norm. Yahoo Finance highlighted that Thursday’s sharp drop for Snowflake came while the broader market actually moved higher. TradingView
That response stands in contrast to Snowflake’s own guidance just months earlier. Back in February, Snowflake projected its fiscal 2027 product revenue would hit $5.66 billion—topping what analysts were looking for. The company also announced that over 2,500 customers were now using Snowflake Intelligence, and revealed a record-breaking deal worth more than $400 million. “Investors are skeptical about all software companies right now,” D.A. Davidson analyst Gil Luria told Reuters following the release. Reuters
Snowflake’s platform pulls company data into a single spot for analysis and AI applications. Fourth-quarter product revenue landed at $1.23 billion, marking a 30% jump from a year ago. Remaining performance obligations—contracted sales that haven’t yet hit the books—climbed 42% to $9.77 billion. “Delivered another strong quarter,” Chief Executive Sridhar Ramaswamy said. Reuters
Snowflake, for its part, maintains that its revenue doesn’t follow the patterns of fixed-subscription software companies. The company’s earnings statements point out that product revenue depends on how much customers actually use—compute, storage, and data transfer. Customers can exceed their contract commitments, or, if they don’t use up all of their capacity, roll it forward to future periods. That’s a departure from what’s typical in traditional SaaS deals.
Competitive pressure is still intense. According to Reuters, Snowflake’s main rival Databricks recently pulled in $4 billion at a $134 billion valuation. Snowflake, for its part, has inked $200 million deals with both OpenAI and Anthropic to bring advanced models onto its platform, spanning all the major cloud providers.
The risks haven’t gone away. “Whether AI spells the end of the software business is an open question,” Michael Clarfeld, a portfolio manager at ClearBridge Investments, told Reuters. Snowflake, for its part, has flagged that tweaks to features, pricing, and customer usage might shake up the timing of its revenue. Investors still see software as exposed to structural threats—so Snowflake could keep feeling the heat, growth in AI workloads or not. Reuters
Right now, investors seem more focused on the sector shakeup than on Snowflake’s AI pitch. Shares finished Friday just above their 52-week low of $118.30—well off the $280.67 high, down almost 57%. That’s despite Snowflake pointing to surging enterprise demand for AI products and an improved revenue forecast.
