Snowflake Partners with OpenAI for $200 Million Collaboration
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy SNOW?
Source: Benzinga
- Partnership Announcement: Snowflake has entered into a multi-year, $200 million partnership with OpenAI aimed at co-innovation and joint go-to-market strategies, enabling OpenAI models, including GPT-5.2, to be natively available to Snowflake's 12,600 global customers, thereby enhancing the development and deployment of customized AI solutions for enterprise clients.
- Favorable Market Conditions: The stock's premarket rise of 3.95% comes as Nasdaq futures increased by 0.32% and S&P 500 futures by 0.22%, indicating a positive sentiment in the technology sector that could further bolster investor confidence in Snowflake.
- Technical Analysis: Currently, Snowflake's shares are trading 7.2% below their 20-day simple moving average and 20.9% below their 100-day moving average, reflecting ongoing weakness, with key support at $160.50 and resistance at $215.00, suggesting investors should monitor these levels closely.
- Earnings Outlook: Investors are looking forward to the earnings report on February 25, 2026, with an estimated loss of 10 cents per share (down from a loss of 30 cents YoY) and revenue projected at $1.25 billion (up from $986.77 million YoY), while analysts maintain a Buy rating with an average price target of $276.82.
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Analyst Views on SNOW
Wall Street analysts forecast SNOW stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 172.910
Low
237.00
Averages
285.29
High
325.00
Current: 172.910
Low
237.00
Averages
285.29
High
325.00
About SNOW
Snowflake Inc. is a data cloud and artificial intelligence company. Its platform is the technology that powers the AI Data Cloud, enabling customers to consolidate data into a single source of truth to drive meaningful insights, apply artificial intelligence (AI) to solve business problems, build data applications, and share data and data products. It provides its platform through a customer-centric, and consumption-based business model. Its cloud-native architecture consists of three independently scalable but logically integrated layers across compute, storage, and cloud services. The compute layer provides dedicated resources to enable users to simultaneously access common data sets for many use cases with minimal latency. The storage layer ingests massive amounts and varieties of structured, semi-structured, and unstructured data to create a unified data record. Its ClearQuery platform allows users to rapidly search, explore, and analyze their data using natural language queries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Expert Opinions: Nvidia CEO Jensen Huang and Wedbush analyst Dan Ives argue that the software industry is not in decline and that enterprises are unlikely to abandon decades of investment in software and infrastructure, creating buying opportunities for certain tech stocks.
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- AI Tool Launch: Anthropic has introduced the Claude Cowork AI agent designed to simplify mundane tasks such as searching, organizing, and assembling files, although this has raised concerns among investors about the potential disruption to traditional software and digital automation providers.
- Market Reaction: The S&P North American Technology Software Index has plunged over 30%, entering bear market territory, reflecting investor fears that AI technologies could replace traditional software, adversely affecting stock performance in the sector.
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- Stock Price Plunge: Following the financial results announcement on February 28, 2024, Snowflake's stock price dropped from $230 to $188.28, a decline of $41.72 or over 18%, resulting in significant losses for investors.
- Changes in Customer Behavior: During the earnings call, company management discussed changes in customer behavior and the impact of certain product developments, which adversely affected the company's outlook and may lead to poor future performance.
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- Extreme Price Volatility: Analysts point out that the extreme price action in software stocks has led to unrealistic expectations regarding AI disruption, which may prompt a rotation back into higher-quality companies, thereby improving portfolio performance.
- AI Profitability Gains: Companies in the S&P 500 that have adopted AI have seen net margins expand by approximately 2 to 3 percentage points more than their peers, indicating that AI technology is already delivering productivity gains and reflecting that corporate adoption is enhancing profitability.
- ETF Performance Decline: The State Street SPDR S&P Software & Services ETF (NYSE:XSW) is down 20.58% year-to-date, illustrating the overall pessimistic sentiment towards the software sector, despite some companies potentially benefiting from AI infrastructure demand.
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- Earnings Report Impact: On February 28, 2024, Snowflake announced its fourth-quarter and full fiscal year 2024 financial results, along with guidance for fiscal year 2025, where management highlighted changes in customer behavior and product developments that negatively impacted the company's outlook.
- Stock Price Decline: Following this news, Snowflake's stock price fell by $41.72, or 18.14%, closing at $188.28 on February 29, 2024, reflecting market apprehension regarding the company's future performance.
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See More
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- Mixed Market Reactions: Despite the significant increase in capital spending, Amazon and Microsoft's shares have dropped 12% and 16% respectively, while Alphabet's stock is down less than 1% and Meta's has risen by 1%, reflecting investor concerns about the timing of returns on these investments.
- Infrastructure Investment Opportunities: With spending accelerating, investors are drawn to
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