New York, January 14, 2026, 12:54 PM EST — Regular session
- Snowflake shares fell roughly 1.4% in midday trading, deepening the losses from Tuesday’s selloff.
- Barclays downgraded its rating to Equal Weight and slashed the price target to $250.
- Investors are focused on whether the stock can climb back above crucial technical levels before the upcoming earnings report.
Snowflake Inc (SNOW) shares slipped 1.4%, reaching $206.52 by midday Wednesday, deepening a slide triggered by a broker downgrade earlier this week.
Risk appetite waned across U.S. stocks, dragging the tech-focused Invesco QQQ Trust down around 1.6%, while the S&P 500 ETF slipped about 1%. Shares of data and monitoring software firms Datadog and MongoDB also fell.
Tuesday’s sell-off hit Snowflake hard, with shares falling roughly 5.1%, following a downgrade from Barclays. The stock saw heavier-than-usual trading volume, MarketBeat data shows.
Barclays downgraded Snowflake from “Overweight” to “Equal Weight,” signaling a forecast for the stock to track its sector more closely. The price target was slashed to $250 from $290. The bank cited a 42% rally priced into 2025, noting that rising expectations and increased competition for new workloads have created an “unfavorable setup” for the shares. TipRanks
Snowflake tumbled below a key technical level, slipping under its 200-day moving average—an important momentum gauge for traders—near $213 on Tuesday. According to Nasdaq data, the stock hasn’t climbed back above that mark since.
The downgrade hits a stock that has already reacted sharply to shifts in its growth outlook. Back in early December, Snowflake shares dropped after the company predicted slower product revenue growth for the fourth quarter. CEO Sridhar Ramaswamy explained this was due to improved pricing on large, long-term contracts that “don’t tend to have an immediate impact on revenue.” Reuters
Analysts are divided on how much upside has already been baked in. Benzinga’s recent ratings roundup puts the average 12-month price target near $285.57, while the lowest comes from Barclays, pegged at $250.
Snowflake offers a cloud-based platform that enables companies to store and analyze data across public clouds. A large chunk of its revenue depends on customer usage, causing quarterly results to fluctuate when clients adjust their spending up or down.
Investors aiming to buy the dip face a clear risk. If enterprise cloud budgets stall or competitors snag new data workloads, Snowflake’s stock could drop again — even if the company keeps expanding. This is all the more true when valuation is the key battleground for bulls and bears alike.
Traders are closely monitoring if the stock can steady itself after the selloff triggered by the downgrade and if additional broker reports emerge ahead of earnings season. Pushing back above the 200-day moving average would quickly reveal whether the decline was largely technical or signals a more serious issue.
The company’s upcoming earnings report is the next major event, slated for after the close on March 4, per Yahoo Finance’s earnings calendar.
