Snowflake Inc. (NYSE: SNOW) finished Tuesday’s session (23.12.2025) near $225 and traded little changed after the bell, as investors digested late-day deal chatter, a cluster of Form 4 insider filings, and fresh AI-focused commentary that continues to shape the company’s narrative heading into year-end. [1]
For traders and long-term investors alike, Wednesday’s session (Dec. 24) comes with an extra twist: U.S. stock markets are scheduled to close early at 1:00 p.m. ET ahead of Christmas Day, a setup that often means thinner liquidity and headline-driven moves. [2]
SNOW after the bell: where Snowflake stock stands tonight
Snowflake shares closed Tuesday at $225.10, down $1.74 (-0.77%) from the prior close of $226.84. In after-hours trading, SNOW hovered around the same level—roughly $224.80 to $225.04—signaling a muted immediate reaction as the day’s news hit the tape late. [3]
Tuesday’s trading range shows why the setup still matters for Wednesday’s open: the stock swung between $219.70 (low) and $226.18 (high) during the regular session, with reported volume near 3.97 million shares. [4]
Context also matters: the broader market backdrop was risk-on. The S&P 500 notched a record close as “growth” leadership reasserted itself, even as bond yields firmed after stronger-than-expected GDP data—conditions that can amplify rotations within high-multiple software names like Snowflake. [5]
The headline risk driving attention tonight: reported talks to buy Observe Inc. for about $1 billion
The biggest “after the bell” storyline is deal chatter.
Late Tuesday, The Information reported (and TheFly relayed) that Snowflake is in discussions to acquire Observe Inc. for about $1 billion, which would potentially be Snowflake’s largest acquisition. The report said the companies have close ties, including Observe’s use of Snowflake’s database technology. [6]
Why the rumored Observe deal matters to SNOW investors
If confirmed, the strategic rationale is straightforward: observability and app monitoring are increasingly critical as enterprises deploy more complex cloud and AI workloads. A credible entry into observability could expand Snowflake’s platform story beyond data storage/analytics and into “monitoring what’s running on top of the data.”
There’s also a notable ecosystem angle:
- Observe positions itself as built on Snowflake, with Snowflake-native integrations highlighted in its product materials. [7]
- Observe says it was founded in 2017 and incubated by Sutter Hill Ventures, with founding talent from Snowflake, Splunk, and Wavefront. [8]
- Observe disclosed a $156 million Series C in July 2025 that included participation from Snowflake Ventures, among others. [9]
- Snowflake itself has previously discussed investing in Observe via Snowflake Ventures. [10]
In other words: the rumor is not about a random target. Observe has long been adjacent to Snowflake’s orbit, which may reduce “strategic surprise,” even if integration and valuation questions remain.
What to watch next on this story before Wednesday’s open
Because the report describes talks (not a signed deal), the key near-term variables are:
- whether other outlets corroborate details (price, structure, timing)
- whether either company comments
- whether the market starts to price in a “platform expansion” premium—or, conversely, M&A execution risk
With thin holiday liquidity likely on Dec. 24, even incremental headlines can matter more than usual.
A burst of Form 4 filings hit after the close: what they show (and what they don’t)
Snowflake also saw a series of after-hours SEC Form 4-related updates that are drawing attention—mostly because they arrived clustered together, not because they were unusually large.
Chief Accounting Officer: tax withholding + a small sale
A Form 4 summary shows Snowflake’s Chief Accounting Officer had shares withheld to cover taxes tied to vesting restricted stock units (RSUs) on 12/22/2025, and then sold 1,072 shares on 12/23/2025 at $223.63. After those transactions, the filing lists 43,809 shares beneficially owned (including shares tied to RSU vesting). [11]
CEO: shares withheld to cover RSU taxes
A separate Form 4 summary shows CEO Sridhar Ramaswamy reported share withholdings (transaction code “F”) on 12/22/2025 at $222.46 to satisfy tax withholding obligations related to vesting RSUs. The filing lists 353,811 shares owned directly after the withholdings (plus a small trust holding noted in the filing summary). [12]
How investors typically interpret this cluster
Form 4 filings can look dramatic in headlines, but in practice:
- tax-withholding transactions tied to equity compensation are common and often not a directional signal
- small sales can be routine, especially when executives are compensated heavily in stock
That said, in a lower-liquidity environment (like the days around Christmas), even routine filings can influence short-term sentiment because they are “fresh” and quantifiable.
Today’s bullish (and bearish) framework: AI momentum vs. valuation and competition
Beyond the tape-action and filings, the most substantive “today” analysis focused on Snowflake’s AI-driven product cycle and adoption metrics.
A Zacks analysis published Tuesday highlighted several datapoints Snowflake has previously discussed in recent quarters, including:
- AI influenced 50% of bookings signed during fiscal Q3 2026
- Snowflake hit a $100 million AI revenue run rate one quarter earlier than expected
- Snowflake Intelligence (described as an agentic AI platform) reached 1,200 customers
- more than 7,300 customers were using Snowflake’s AI and ML technology weekly
- Snowflake announced a multi-year $200 million expansion of its partnership with Anthropic (including Claude models and joint go-to-market efforts)
- for fiscal Q4 2026, Snowflake guided product revenue to $1.195–$1.20 billion (about 27% year-over-year growth) [13]
The same analysis also emphasized that Snowflake trades at a valuation premium (a recurring debate for SNOW bulls vs. bears), and flagged competitive pressure from hyperscalers and other platform providers expanding AI capabilities. [14]
Why this matters for Wednesday’s open
In a normal week, investors might treat that kind of analysis as “background noise.” But on a holiday-shortened session, with fewer macro catalysts and lighter volume, the narrative can matter more—especially if the market starts to connect the dots between:
- Snowflake’s AI “agentic” push (Snowflake Intelligence)
- the rumored Observe acquisition (monitoring/observability for new AI applications)
- and the broader “platform consolidation” theme in enterprise software
Forecasts and price targets published/updated around today
Wall Street forecasts are not guarantees, but they heavily influence positioning in widely held software names like Snowflake.
Across major tracking services, Snowflake’s 12-month analyst target cluster remains meaningfully above the current trading level, though exact averages vary by source and sample:
- TipRanks shows an average price target of $286.42, with a high forecast of $325 and low of $237, based on analysts’ recent ratings (and labeled consensus “Strong Buy” in its snapshot). [15]
- Zacks’ price target snapshot shows an average target of $278.45 based on a larger analyst set, with forecasts spanning from at least $170 on the low end. [16]
- MarketBeat lists a consensus target of $275.32 and characterizes the consensus rating as “Moderate Buy.” [17]
Separately, a long-horizon forecast piece from 24/7 Wall St. published Tuesday laid out a multi-year projection table that extends into 2030 (not a traditional Wall Street “12-month target”), with figures reaching into the $400+ range by the end of the decade in its scenario framework. [18]
How to use these forecasts intelligently before the open: treat them as sentiment and expectation markers, not as near-term price “promises.” In the short run—especially on Dec. 24—headline risk and liquidity can dominate fundamentals.
What to know before the market opens Wednesday, Dec. 24, 2025
Wednesday is not a normal trading day.
1) It’s an early close session (liquidity warning)
NYSE schedules show an early close at 1:00 p.m. ET on Wednesday, Dec. 24, 2025 (with eligible options closing at 1:15 p.m. ET). [19]
Reuters also flagged that volumes were already light and expected to thin further into the holiday, a backdrop that can exaggerate moves in single-name stocks on incremental headlines. [20]
2) Jobless claims hit at 8:30 a.m. ET
One macro item to keep on your radar before the open: Initial jobless claims are scheduled for 8:30 a.m. ET on Dec. 24 (week ended Dec. 20), with forecasts clustered around the mid-200,000 range depending on the calendar snapshot. [21]
Why SNOW investors care: labor-market surprises can swing Treasury yields and risk appetite, and high-multiple software names often trade as a function of rates—especially during thin sessions when index-level moves can spill into momentum baskets.
3) Watch for follow-through on the Observe rumor
If there’s any additional reporting—confirmation, denial, or detail—expect it to land into a market with fewer participants than usual. That can amplify price reactions in either direction.
A practical checklist for premarket scanning:
- additional reporting about valuation/terms/timeline [22]
- whether Snowflake or Observe comment publicly
- whether other software names in observability/APM react (sympathy or competitive read-through)
4) Know the “key levels” created by Tuesday’s range
From Tuesday’s tape, investors now have clean reference points:
- Near-term support: around $219.70 (Tuesday’s low)
- Near-term resistance: around $226.18 (Tuesday’s high) [23]
If SNOW breaks outside that band on Wednesday, the move may look larger than it “should” simply because there’s less liquidity to absorb orders.
Bottom line for SNOW heading into Wednesday’s open
Snowflake ends Dec. 23 with the stock steady after hours and the narrative mix shifting toward M&A optionality (Observe talks) layered on top of the company’s AI adoption story and routine insider/compensation-related filings. [24]
For Dec. 24, the most important “before the bell” takeaway is structural: it’s a shortened session with a key macro print at 8:30 a.m. ET and the potential for outsized reactions if any additional reporting hits on the rumored Observe acquisition. [25]
References
1. www.google.com, 2. www.nyse.com, 3. www.google.com, 4. www.google.com, 5. www.reuters.com, 6. www.tipranks.com, 7. www.observeinc.com, 8. www.observeinc.com, 9. www.observeinc.com, 10. www.snowflake.com, 11. www.stocktitan.net, 12. www.stocktitan.net, 13. www.nasdaq.com, 14. www.nasdaq.com, 15. www.tipranks.com, 16. www.zacks.com, 17. www.marketbeat.com, 18. 247wallst.com, 19. www.nyse.com, 20. www.reuters.com, 21. www.marketwatch.com, 22. www.tipranks.com, 23. www.google.com, 24. www.google.com, 25. www.nyse.com
