Snowflake Inc. saw its shares advance approximately 4.6% in after-hours trading Monday, closing at $175.95. The move stood out in a software sector that was broadly recovering from a sharp decline the previous week.
Analysts at Jefferies maintained a Buy rating on the stock with a $300 price target, characterizing the recent market downturn as an overreaction. The firm suggested fears that artificial intelligence would intensify competition and pressure profits have been overstated.
Trading volume was notable, with roughly 8.8 million shares changing hands. The broader software services index, as tracked by the S&P 500, gained 2.9% on the day.
Market attention is now split between two imminent events: the release of U.S. January consumer price index data on February 13 and Snowflake's own quarterly financial results scheduled for February 25. These updates are expected to provide critical insights into enterprise spending trends and broader economic conditions.
Snowflake recently announced a strategic $200 million investment in OpenAI, aiming to integrate advanced AI models directly into its cloud data platform. The company argues this will allow clients to leverage AI tools using their proprietary data.
Despite the late-day rebound, questions persist about whether software stocks can sustain their recovery, especially if macroeconomic pressures or competitive dynamics in the AI space re-emerge.
