What Happened?
Shares of cloud data platform provider Snowflake (NYSE: SNOW) jumped 3.5% in the morning session after investors showed optimism ahead of its second-quarter earnings report, scheduled for release after today's market close. The pre-earnings rally may be influenced by strong results from competitor MongoDB, which saw its own stock surge after a blowout report. Analysts are forecasting significant growth for Snowflake, with Wall Street expecting earnings of $0.27 per share, up from $0.18 in the year-ago period. Revenue is projected to climb 25% year-over-year to $1.09 billion. This optimism is supported by the company's history of beating earnings per share estimates in the last four consecutive quarters, and several analysts have recently reiterated positive ratings on the stock.
After the initial pop the shares cooled down to $199.39, up 2.6% from previous close.
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What Is The Market Telling Us
Snowflake’s shares are quite volatile and have had 15 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 3.2% on the news that Bank of America lifted its rating on the company to 'Buy' from 'Neutral'. Analyst Bradley Sills of Bank of America Securities raised the rating, citing growing optimism ahead of Snowflake's second-quarter earnings report scheduled for August 27. The price target for the stock was also increased to $240 from $220. Sills highlighted that the cloud data company is experiencing strong momentum in three key areas: its core data warehouse business, as well as its emerging Cortex AI and Snowpark developer platforms. The analyst expressed strong conviction in the durability of Snowflake's AI-driven momentum and its ability to sustain growth.
Snowflake is up 26.6% since the beginning of the year, but at $199.39 per share, it is still trading 11.7% below its 52-week high of $225.79 from July 2025. Investors who bought $1,000 worth of Snowflake’s shares at the IPO in September 2020 would now be looking at an investment worth $785.20.
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