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Snowflake’s Stock Plummets on Weak Margin Forecast Despite AI-Driven Revenue Growth

Snowflake’s Stock Plummets on Weak Margin Forecast Despite AI-Driven Revenue Growth

Published:
2025-12-04 17:59:01
19
3
BTCCSquare news:

Snowflake shares tumbled over 10% Thursday after the cloud data analytics firm issued a disappointing operating margin forecast of 7% for Q4, below both its prior 9% guidance and Q3's 11% performance. The selloff occurred despite the company beating analyst estimates with $0.35 adjusted EPS and $1.21 billion revenue, representing 29% YoY growth.

Wall Street expressed concern about Snowflake's rising AI investment costs compressing profitability, with Oppenheimer noting short-term pressure while maintaining an $295 price target. The paradox of strong AI-driven demand clashing with margin erosion highlights the capital intensity of enterprise AI infrastructure development.

|Square

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