Snowflake stock (NYSE: SNOW) is taking a breather this weekend after a sharp two‑day sell-off, with investors reassessing the AI data-cloud favourite ahead of its next earnings report on Wednesday, December 3, 2025. [1]
Snowflake stock today: price, performance and key levels
U.S. markets are closed on Saturday, 22 November, so the latest actionable snapshot for Snowflake stock comes from Friday’s close (21 November 2025):
- Close: $234.03
- Intraday range: $228.58 – $246.37
- Daily move:‑4.34% on volume of about 6.8 million shares [2]
That decline followed a 3.29% drop on Thursday, taking Snowflake’s three‑session slide from Wednesday’s close of $252.98 to $234.03—roughly a 7.5% pullback from mid‑week levels. [3]
Despite the recent weakness, Snowflake remains a big 2025 winner:
- The stock is about 95% above its 52‑week low of $120.23 set on 8 April 2025. [4]
- It sits roughly 16.6% below its 52‑week high of $280.48 hit on 4 November. [5]
- Snowflake’s market capitalisation is around $79–80 billion, nearly doubling (≈95% higher) over the past 12 months. [6]
In other words, SNOW is still a momentum stock, but investors have started to question how much good news is already priced in.
Why Snowflake shares are under pressure this week
The latest pullback looks more like valuation‑driven profit‑taking than a sudden deterioration in Snowflake’s business.
Several factors are in play:
- A big run‑up is being digested.
After strong Q2 FY26 earnings in August and a series of AI‑focused product announcements, Snowflake stock surged, at one point trading near or above suggested technical buy points around the $250–$255 range highlighted by growth‑stock research outlets. [7] - Valuation remains demanding.
Recent data puts Snowflake’s price‑to‑sales ratio near 19x based on trailing 12‑month revenue, far above the U.S. software industry average of around 2–3x and still at a premium to many high‑growth peers. [8] - Rotation within AI and software.
With AI leaders like Nvidia and other software names also in focus, some investors appear to be rotating within the AI trade rather than increasing overall exposure, leaving richly valued names like Snowflake more vulnerable to sharp swings. [9] - Insider selling headlines.
MarketBeat reports that Snowflake insiders have sold over 930,000 shares (about $216 million) over the last 90 days, even as institutions have been adding to positions—news that can spook short‑term traders. [10]
Taken together, the story isn’t that Snowflake’s growth has suddenly stalled; it’s that the bar for “surprise to the upside” is now very high.
Fundamentals: high growth, improving margins, but still GAAP‑unprofitable
From a business perspective, Snowflake’s latest reported quarter—Q2 FY26 (ended 31 July 2025)—was strong:
- Total revenue: about $1.14 billion, up roughly 32% year over year. [11]
- Product revenue:$1.09 billion, also growing 32% and ahead of earlier guidance. [12]
- Adjusted EPS (non‑GAAP):$0.35, smashing consensus estimates around $0.27–0.28 and almost doubling from $0.18 a year earlier. [13]
- Net revenue retention: a robust 125%, indicating existing customers are consistently expanding their spending on the platform. [14]
- Non‑GAAP operating margin: roughly 11%, signalling improving operating leverage despite continued heavy investment in AI and platform features. [15]
On the flip side, Snowflake remains unprofitable on a GAAP basis:
- Q2 FY26 GAAP net loss was around $298 million, or ‑$0.89 per share, implying a net margin near ‑33%. [16]
So the investment case today hinges on sustained high growth and eventual margin expansion. The company is clearly moving in that direction—non‑GAAP profitability and healthy free‑cash‑flow margins—but the market is still paying up for earnings that are largely in the future.
All eyes on Q3 FY26 earnings on 3 December
Snowflake has already told investors to circle 3 December 2025 on their calendars. The company will release Q3 FY26 (quarter ended 31 October 2025) results after the U.S. market close, followed by a conference call with CEO Sridhar Ramaswamy and CFO Brian Robins. [17]
Current guidance and street expectations focus on three key areas:
- Revenue momentum
- Profitability and cash flow
- Snowflake is targeting a 75% non‑GAAP product gross margin, a 9% non‑GAAP operating margin, and about a 25% adjusted free‑cash‑flow margin for FY26. [20]
- AI adoption metrics
- Management has highlighted that more than 6,100 customer accounts use Snowflake’s AI capabilities each week, and over 650 customers generate more than $1 million in annual product revenue. [21]
For the upcoming report, investors will be watching:
- Whether growth holds above 25% in Q3 and the updated FY26 outlook;
- Any sign that net revenue retention (125% last quarter) is slipping as large customers optimise their cloud spending;
- How AI‑driven workloads and new products translate into usage and long‑term commitments.
A strong beat and confident guidance could quickly reverse the recent pullback. A miss—or even just cautious commentary—could put more pressure on the multiple.
AI, partnerships and product momentum
Part of the bull case for Snowflake stock is that it has become deeply embedded in the AI infrastructure stack:
- Snowflake has announced native integration of NVIDIA CUDA‑X data‑science libraries into Snowflake ML, enabling GPU‑accelerated training and inference using familiar Python tooling inside its platform. [22]
- On 4 November 2025, the company unveiled Snowflake Intelligence, a suite that brings “agentic AI” into enterprises, allowing natural‑language interactions with governed data and deployment of thousands of AI agents across more than 12,000 organisations. [23]
- The same day, Snowflake rolled out major lakehouse and developer enhancements—including Openflow, interactive tables and warehouses, Snowflake Postgres previews, and VS Code / Git integrations—designed to make it a one‑stop platform for data engineering, analytics and AI‑app development. [24]
- Strategic partnerships with SAP, Palantir and Cognite further knit Snowflake into enterprise data fabrics and industrial AI use cases, reinforcing its role as a central data and AI hub rather than a point solution. [25]
These moves help justify Snowflake’s premium valuation in the eyes of many investors: the company isn’t just a data warehouse, it is trying to be the “AI Data Cloud” where high‑value workloads live for the next decade.
Valuation check: still a premium AI growth stock
Even after the pullback, Snowflake trades at rich multiples:
- Price‑to‑sales (trailing): around 19x, versus a U.S. software‑sector average near 2–3x and above many high‑growth application‑software peers. [26]
- One recent analysis notes Snowflake’s P/S multiple is not only well above the sector average but also higher than an estimated “fair” ratio around 16x, raising questions about downside risk if growth decelerates. [27]
- FactSet‑based data suggests a P/E near 190x on adjusted earnings and elevated EV/revenue and EV/FCF multiples relative to many cloud peers. [28]
This is the classic “great company, expensive stock” dilemma:
- Bulls argue that Snowflake’s combination of 25–30%+ revenue growth, 75% gross margins, strong net revenue retention and deep AI integration makes it worthy of a structural premium. [29]
- Bears counter that even modest growth disappointments or a broader de‑rating of AI names could trigger multiple compression, hitting highly valued stocks like Snowflake hardest. Some valuation models flag SNOW as scoring poorly on traditional affordability checks. [30]
For now, analysts remain largely constructive. MarketBeat data shows a “Moderate Buy” consensus with price targets clustered around the mid‑$260s to low‑$300s, including recent hikes from firms such as UBS, Needham, Piper Sandler, Truist and others. [31]
Institutional flows: big money buying, insiders selling
Two fresh filings this week highlight how institutions and insiders are behaving ahead of Q3 earnings:
- Legal & General Group Plc increased its stake by about 0.7% in Q2, owning roughly 1.76 million shares (≈0.53% of the company) valued near $395 million. [32]
- Kingsview Wealth Management LLC boosted its position by 56%, to over 4,300 shares worth about $966,000. [33]
- Overall, about 65% of Snowflake’s shares are held by institutional investors, underscoring strong professional interest. [34]
At the same time, insider‑selling headlines—senior executives cashing in stock after big price gains—remind markets that management is taking chips off the table, even if that’s common practice at high‑growth tech firms. [35]
Technical picture: volatile but still in a longer‑term uptrend
From a technical perspective:
- Research outlets that track chart patterns have repeatedly placed Snowflake in or near “buy zones” this autumn, citing ascending bases and breakouts around the mid‑$250s. [36]
- The recent retreat back toward the mid‑$230s brings SNOW below some of those breakout points, which short‑term traders may read as a failed breakout or a deeper consolidation.
- However, on a longer horizon, the stock’s near‑doubling from April lows and strong 12‑month advance still point to a primary uptrend with elevated volatility. [37]
If Q3 numbers impress, the current dip could be remembered as a healthy reset within a larger bull run. Disappointing earnings, however, would strengthen the case that the stock has already seen its peak—at least for this cycle.
Key risks Snowflake investors should keep in mind
Anyone following Snowflake stock today should be aware of several key risk themes:
- Competitive intensity
Snowflake operates in a fiercely contested space, facing rivals such as Databricks, hyperscale cloud providers and other AI‑focused data platforms. Analysts frequently frame the market as a battle between a handful of giants, with Databricks and Snowflake seen as primary challengers. [38] - Cloud spending cycles
Snowflake’s consumption‑based model is powerful when customers ramp workloads, but it also makes revenue sensitive to optimisation cycles as enterprises tighten budgets. - Valuation and macro shocks
With SNOW trading at premium multiples, external shocks—higher rates, risk‑off sentiment, or a broader AI de‑rating—could hurt the stock more than slower‑growth, cheaper peers. [39] - Execution on AI strategy
Snowflake’s narrative now leans heavily on AI and “agentic” applications. If these initiatives fail to translate into sustained usage and revenue re‑acceleration, the story supporting today’s valuation would weaken. [40]
Bottom line: how to think about Snowflake stock today
As of 22 November 2025, Snowflake stock finds itself at a familiar crossroads for high‑growth tech:
- The business is performing well, with 30%+ revenue growth, expanding non‑GAAP margins, strong net revenue retention and a deepening role in the AI stack. [41]
- The stock, however, already reflects a lot of that promise, trading at premium valuation multiples even after a multi‑day pullback that brought shares below $235. [42]
For long‑term growth‑oriented investors, Snowflake remains a high‑beta way to bet on the growth of AI‑driven data platforms—provided they are comfortable with significant price swings and the risk that the valuation multiple compresses.
For more conservative or valuation‑sensitive investors, the recent dip may not yet compensate for the downside if growth slows or market sentiment turns against richly valued AI names.
Either way, the upcoming Q3 FY26 earnings on 3 December are likely to be the next major catalyst. They will test whether Snowflake can keep delivering the kind of top‑line growth and AI‑driven narrative that its current share price demands.
This article is for informational purposes only and does not constitute financial advice, investment recommendation or an offer to buy or sell any securities. Always do your own research or consult a licensed financial adviser before making investment decisions.
References
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