Snowflake Shares Dip Despite Strong Cash Flow Outlook
Snowflake (SNOW) fell 1.52% despite reaffirming its 25% free cash FLOW margin target—a metric analysts say could justify a 20%+ valuation upside. The drop extends a post-earnings slump, with shares now at $226.82, well below November’s $265 peak.
Q3 results showed solid revenue growth and improving cash flow, but full-year FCF margins may fall short of guidance. Cautious Q4 operating margin projections and AI-related spending concerns weighed on sentiment.
Analysts remain bullish, with price targets NEAR $280–$300, framing the pullback as a buying opportunity. Long-term demand for data-cloud and AI infrastructure still supports Snowflake’s growth trajectory.