Snowflake Inc.
SNOW
$0.00
-0.83%
Snowflake Inc. is a technology company providing a fully managed cloud data platform for centralized analytics and governance. It is a leader in the data cloud space, with a core advantage being its unique architecture that allows independent scaling of compute and storage layers across major public clouds.…
SNOW
Snowflake Inc.
$0.00
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Investment Opinion: Should I buy SNOW Today?
Based on a synthesis of the data, the objective assessment is a Hold. The bullish analyst sentiment (8 Buys) and strong growth profile are counterbalanced by the stock's severe technical breakdown, lack of profits, and high valuation relative to current fundamentals. The stock appears to be in a 'show me' phase where investors need to see evidence of margin improvement and a stabilization in price action. It is not yet a clear Buy, but the significant decline from highs reduces the margin of error for new sellers.
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SNOW 12-Month Price Forecast
The data presents a conflicted picture: strong fundamentals are overshadowed by terrible price action and sector fears. The neutral stance reflects high uncertainty, with the outcome heavily dependent on execution over the next few quarters.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Snowflake Inc.'s 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
8 analysts
Implied Upside
—
vs. current price
Analyst Count
8
covering this stock
Price Range
$0 - $0
Analyst target range
Wall Street analyst consensus shows strong support for the stock, with recent institutional ratings from ten major firms. The data indicates eight firms have a 'Buy' or 'Overweight' rating, one has a 'Neutral' rating, and one has an 'Equal Weight' rating. This suggests a predominantly bullish analyst sentiment. However, specific consensus target price data is not provided in the inputs. Analysts estimate an average EPS of $5.45 and average revenue of $11.95 billion for the upcoming period, indicating expectations for significant future profitability and growth.
Bulls vs Bears: SNOW Investment Factors
Snowflake presents a classic high-growth, high-burn investment case. Bullish arguments center on its strong revenue growth, market leadership, and cash generation. Bearish concerns focus on persistent losses, a broken technical chart, and a premium valuation amidst sector-wide fears. The stock is at a critical juncture.
Bullish
- Strong Revenue Growth: Q4 revenue grew 30% YoY to $1.28B, demonstrating robust demand.
- Leader in Data Cloud: Unique architecture and market position provide a competitive moat.
- Positive Free Cash Flow: Generates strong FCF ($1.12B TTM), supporting operations despite losses.
- Analyst Support: 8 out of 10 major firms rate it Buy/Overweight, signaling confidence.
Bearish
- Persistent Heavy Losses: Net margin -24.1%, with high R&D and S&M expenses eroding profits.
- Weak Technical Trend: Price down 31% in 3 months, underperforming SPY by 27%.
- High Valuation Multiple: P/S ratio of 13.9 is high for an unprofitable company.
- Poor Operational Efficiency: Deeply negative ROE (-69.2%) and low asset turnover (0.14).
SNOW Technical Analysis
The stock has been in a pronounced downtrend over the observed 180-day period, falling from around $240 in early October 2025 to approximately $151 by March 31, 2026. This represents a significant decline, with the price data showing a clear series of lower highs and lower lows, culminating in a sharp drop in February 2026.
Short-term performance has been extremely weak. The stock is down 10.44% over the past month and down 31.25% over the past three months, significantly underperforming the broader market (SPY) which was down 5.25% and 4.63% over the same periods, respectively. The most recent price action shows the stock closing at $150.82, down from $153.67 the previous day.
The current price of $150.82 sits near the lower end of its 52-week range of $120.10 to $280.67. This positions the stock approximately 46% below its 52-week high. The price is currently 26% above the 52-week low, indicating it has recovered somewhat from the lows hit in late February and March but remains deeply depressed from its peak.
Beta
1.23
1.23x market volatility
Max Drawdown
-45.6%
Largest decline past year
52-Week Range
$120-$281
Price range past year
Annual Return
-1.3%
Cumulative gain past year
| Period | SNOW Return | S&P 500 |
|---|---|---|
| 1m | -8.4% | -4.3% |
| 3m | -29.9% | -4.0% |
| 6m | -35.4% | -2.0% |
| 1y | -1.3% | +22.2% |
| ytd | -29.9% | -3.8% |
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SNOW Fundamental Analysis
Revenue growth remains strong on a year-over-year basis, with the latest quarterly revenue of $1.28 billion representing a 30.1% increase. However, the company continues to operate at a significant loss. The net income for Q4 2026 was -$309.55 million, resulting in a net margin of -24.1%. The gross margin is healthy at 66.8%, but high operating expenses, particularly in R&D and sales & marketing, lead to substantial operating losses.
Financial health shows a mixed picture. The company has a debt-to-equity ratio of 1.42, indicating it uses more debt financing than equity. However, it maintains a strong current ratio of 1.30 and generates substantial positive free cash flow, with TTM free cash flow reported at $1.12 billion. The cash flow statements show consistent positive operating cash flow, providing liquidity despite net losses.
Operational efficiency metrics are concerning due to ongoing losses. Return on Equity (ROE) is deeply negative at -69.2%, and Return on Assets (ROA) is -9.87%. The asset turnover ratio from the latest quarterly data is 0.14, suggesting the company generates $0.14 in revenue for every dollar of assets, which is relatively low for a software company.
Quarterly Revenue
$1.3B
2026-01
Revenue YoY Growth
+0.30%
YoY Comparison
Gross Margin
+0.66%
Latest Quarter
Free Cash Flow
$1.1B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is SNOW Overvalued?
Given the company's negative net income and EBITDA, the Price-to-Sales (PS) ratio is the most appropriate valuation metric to use. Snowflake's trailing PS ratio is 13.88, based on the provided data. This valuation reflects investor expectations for future growth and profitability, as the company is currently unprofitable.
Peer comparison data is not available in the provided inputs. Therefore, an assessment of whether the PS ratio of 13.88 is high or low relative to the software industry average cannot be made. The valuation is primarily driven by the company's high revenue growth rate of 30% and its market position, despite the lack of current profits.
PE
-48.8x
Latest Quarter
vs. Historical
High-End
5-Year PE Range -175x~-29x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
-60.0x
Enterprise Value Multiple
Investment Risk Disclosure
Snowflake's primary risk is its path to profitability. Despite 30% revenue growth, net losses remain substantial (-$310M in Q4), driven by heavy investment in R&D and sales & marketing. This raises execution risk if growth slows before margins improve. The valuation risk is high, with a P/S ratio of 13.9; any disappointment in growth could trigger a severe multiple contraction, as seen in the recent 46% decline from highs.
Market and sector risks are elevated. Recent news discusses a 'SaaSpocalypse,' where AI-driven automation threatens traditional SaaS subscription models. Snowflake's beta of 1.21 indicates higher volatility than the market. Furthermore, the stock's severe underperformance (-26.6% vs. SPY over 3 months) suggests it is caught in a broader sector de-rating, which may persist.
Financial health risks are mixed. The debt-to-equity ratio of 1.42 indicates reliance on debt financing, though the strong current ratio (1.30) and positive operating cash flow provide near-term liquidity. The key risk remains the sustainability of its cash burn if the macro environment for tech spending deteriorates further.
FAQ
The key risks are: 1) Profitability Risk: Persistent net losses (-$310M last quarter) could continue if growth spending doesn't slow. 2) Valuation Risk: The high P/S ratio of 13.9 is vulnerable if growth decelerates. 3) Sector Risk: Fears of AI disrupting SaaS business models ('SaaSpocalypse') could pressure the entire sector. 4) Technical Risk: The stock is in a pronounced downtrend, significantly underperforming the market.
The 12-month outlook is mixed with a base case target range of $150-$200. Analysts project significant future EPS of $5.45 on revenue of $11.95B, implying a path to profitability. However, the stock's path will depend on execution. The bull case (30% probability) sees a re-rating towards $280, while the bear case (20% probability) could see a retest of the 52-week low near $120 if growth disappoints.
SNOW appears richly valued based on current profits but may be undervalued based on future growth. Its P/S ratio of 13.9 is high for the software sector, reflecting expectations for future profitability. However, with a net margin of -24%, the stock is expensive on an earnings basis. The 46% decline from its 52-week high suggests the market has already priced in significant risk.
SNOW is a high-risk, high-potential stock. It is not a clear buy at this moment. While analyst sentiment is bullish (8 Buy ratings) and revenue growth is strong at 30%, the stock is in a severe downtrend, down 31% in 3 months, and remains unprofitable. It may be suitable only for aggressive investors who believe in its long-term market dominance and can tolerate significant volatility.
SNOW is only suitable for long-term investors with a high-risk tolerance. The company is in a heavy investment phase, and profitability is likely several years away. Short-term traders face extreme volatility, as evidenced by the 31% drop in 3 months. Long-term investors must believe in the company's vision for the data cloud and its ability to eventually convert high growth into strong profits.