New York, Feb 4, 2026, 18:50 EST — After-hours
- Snowflake shares fell 4.6% to $165.29 in Wednesday’s regular session
- A filing showed Snowflake product EVP Christian Kleinerman sold 10,000 shares
- Investors now look to Feb. 25 earnings for guidance on demand and new AI features
Snowflake Inc (SNOW.N) shares fell 4.6% on Wednesday to close at $165.29, after trading as low as $159.61 during the session. The stock has slid about 13% since Monday’s close, with about 17 million shares traded, according to market data.
The move tracked a fresh leg down in U.S. tech and software, as investors questioned rich valuations and whether the market’s AI rally has topped out. “The market is suddenly skeptical and concerned about it,” said Jed Ellerbroek, a portfolio manager at Argent Capital, pointing to the pace of AI adoption and uncertainty around where profits land. Reuters
Snowflake is also trying to keep its footing in a fast-moving product race. At its Build London event on Tuesday, it rolled out new tools including Cortex Code, an “agent” that can generate code while applying security controls, and Semantic View Autopilot, which automates “semantic views” — business-friendly definitions that help software understand company data. William McKnight, president of McKnight Consulting, said the announcements helped Snowflake’s competitive standing, while analyst Sanjeev Mohan said the “pace has picked up.” TechTarget
A regulatory filing added another headline: executive vice president of product Christian Kleinerman sold 10,000 shares on Feb. 2 at $197.09 per share, a Form 4 showed. The filing said the sale was made under a Rule 10b5-1 plan adopted in December 2024, leaving him with 461,351 shares.
A 10b5-1 plan is a pre-set trading arrangement that can let insiders sell stock on a schedule, even when they later hold material nonpublic information. Traders still scan those filings for timing and size — especially when the stock is already under pressure.
Earlier this week, OpenAI and Snowflake disclosed a multi-year $200 million partnership to bring OpenAI models into Snowflake products, including Snowflake Cortex AI and Snowflake Intelligence. “By bringing OpenAI models to enterprise data, Snowflake enables organizations to build and deploy AI on top of their most valuable asset,” Snowflake CEO Sridhar Ramaswamy said, while OpenAI’s Fidji Simo said the tie-up makes it easier for businesses to deploy AI “agents” — software that can take steps on its own to retrieve and analyze data — inside Snowflake. OpenAI
Snowflake also said it closed its acquisition of Observe, a maker of AI-powered “observability” tools that help companies monitor systems and troubleshoot issues. Observe CEO and founder Jeremy Burton resigned from Snowflake’s board after the deal closed, the company said. Snowflake
The backdrop is messy. Snowflake sells a cloud data platform used to store and analyze corporate data, but it faces deep-pocketed rivals and customers that are picky about budgets, security and how quickly new AI features show real returns.
But the near-term risk for the stock is that product headlines do not quickly translate into durable growth, while competition and higher compute costs squeeze margins. Integration work — including folding in Observe — can also create execution risk at a time when investors are less forgiving.
For Thursday’s session, traders will watch whether selling in software names extends, or whether bargain-hunters step back in after the two-day drop. The next hard catalyst for Snowflake is its quarterly report and outlook.
Snowflake is scheduled to report fourth-quarter and full-year fiscal 2026 results on Feb. 25.
