NEW YORK, February 3, 2026, 20:10 EST — Market closed
Shares of Snowflake Inc. fell 9.1% Tuesday, closing at $173.24 after trading as high as $193.49 and as low as $169.08. The stock had finished Monday at $190.66.
The selloff is significant because investors are pulling back on software and cloud stocks, rethinking how quickly AI can boost pricing power and margins—even among companies touting themselves as AI winners. “We’re seeing a lot of software companies across the spectrum get hit,” said Art Hogan, chief market strategist at B. Riley Wealth. John Campbell at Allspring described parts of the market as “priced for perfection.” Reuters
Selling intensified after Anthropic rolled out updated Claude Cowork “plug-ins” designed to automate tasks in legal, sales, marketing, and data analysis. “Sometimes the market just shoots first and asks questions later,” said Mike Archibald, portfolio manager at AGF Investments, as investors weighed whether AI tools might erode the “visibility premium” that typically underpins software valuations. Reuters
Snowflake added product updates to its news flow. The company announced that Snowflake Postgres will now run natively in its AI Data Cloud. It also highlighted new features around interoperability, governance, and resilience — like Microsoft OneLake integration and enhanced data backup tools — designed to help move AI projects beyond pilot stages into full production. “The real challenge is ensuring AI systems can consistently access data,” said Snowflake product chief Christian Kleinerman. Nasdaq
Just one day earlier, Snowflake announced a $200 million deal with OpenAI to integrate AI models into its cloud data platform. The goal: create “AI agents” that perform multi-step tasks by pulling answers from company data using natural language instead of code. Snowflake said these OpenAI models will be accessible across all three major cloud providers. Early adopters include Canva and WHOOP. The company also highlighted rising competition from Databricks. Reuters
OpenAI positioned the partnership as a route for enterprises to run models like GPT‑5.2 within Snowflake Cortex AI and Snowflake Intelligence, including the ability to invoke models directly from SQL, the go-to database query language. “Build and deploy AI on top of their most valuable asset,” said Snowflake CEO Sridhar Ramaswamy. OpenAI’s Fidji Simo described Snowflake as “a trusted platform that sits at the center” of enterprise data. OpenAI
SNOW holders know the drill: fresh AI features might boost usage on this consumption-based platform, yet they risk pushing up costs and intensifying competition. Tuesday’s trading hinted that investors remain focused on the risks, not the product demos.
Snowflake will release its fiscal 2026 fourth-quarter and full-year results after U.S. markets close on February 25. The company plans a conference call at 3 p.m. Mountain Time.
The company announced that CEO Ramaswamy and CFO Brian Robins will present at Morgan Stanley’s Technology, Media & Telecom Conference on March 3 at 4:05 p.m. Pacific time.
The bigger risk? The AI trade has morphed into a margin battle. If investors start betting that AI agents will commoditize chunks of analytics and back-office software quicker than vendors can repackage and price them, those bounce-backs could be razor-thin.
February 25 is the date to watch, as Snowflake’s guidance and remarks on AI-driven demand are expected to shape sentiment heading into the next week.
