How to Trade Snowflake After Fiscal Q3 2025 Performance

November 26, 2024 09:42

Snowflake is a US-based tech company that specialises in cloud-based data-warehousing. It allows companies to store and process large volumes of data in a scalable and efficient manner, without any physical infrastructure. 

Founded in 2012, the company went public in September 2020. With an IPO (initial public offering) price of $120, it more than doubled this to $245 per share at the open. However, in August 2024, Snowflake recorded a new all-time low of $107.13 but jumped 32% on its most recent earnings report. 

Learn more about Snowflake's fiscal third-quarter 2025 performance and what analysts are forecasting for the stock.

Stock: Snowflake Inc.
Symbol for Invest.MT5 Account: SNOW
Date of Idea: 26 November 2024
Time Line: 1 - 6 months
Entry Level: $161.00
Target Level: $225.00
Position Size for Invest.MT5 Account: Max 5%
Risk: High
  • The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.

Snowflake Fiscal Q3 2025 Performance

Here are some of the key highlights from the fiscal third-quarter 2025 earnings report from Snowflake:  

  • Earnings per share of 20 cents vs 15 cents expected 
  • Product revenue of $942 million vs $897 million expected up 28% year over year 
  • 542 customers with 12-month product revenue greater than $1 million and 754 Forbes Global 2000 customers

Snowflake beat analyst estimates on most financial performance metrics. The stock surged 32% on the earnings release, recording its best day since the company went public in 2020.

The management team increased their fiscal 2025 product revenue guidance to $3.43 billion, implying 29% growth. While the company is focused on saving on costs, they are not expecting any major job cuts.

Earlier in the year, it announced it acquired Night Shift Development which is a company that targets the public sector in the US, in which Snowflake believes there are more opportunities for growth.

The company is also focused on several AI initiatives which some analysts believe could account for more growth in the future. However, Snowflake's stock price did not rally like other AI-related stocks this year, suggesting it may be a long way off to have AI help its bottom line.

The company is operating in a very competitive market and will need to innovate to stay ahead. This costs money and puts pressure on margins and capital expenditure. Snowflake includes larger tech companies, such as Amazon and Microsoft as customers. As these tech giants improve their data warehousing products, there will be less reliance on using Snowflake.

This is just one reason why more analysts are moving to a hold rating on the stock, as highlighted below.

Snowflake Stock Forecast - What do the Analysts Say?

According to 30 analysts polled by TipRanks for an Snowflake stock forecast in the past 3 months, there are currently 23 buy, 7 hold and 0 sell ratings on the stock. The highest price level for a Snowflake stock forecast is $225.00 with the lowest price target at $142.00. 

The average price target for a Snowflake stock forecast is $185.58.

Source: TipRanks, 26 November 2024

 

An Example Trading Idea for the Snowflake Stock Price

An example trading idea for the Snowflake share price could be as follows:  

  • Buy the stock on a pullback to $161.00 to allow for volatility. 
  • Target just below the highest analyst price target of $225.00. 
  • Keep your risk small at a maximum of 5% of your total account.   
  • Time Line = 1 – 6 months  
  • If you buy 10 Snowflake shares:  
    • If target is reached = $640.00 potential profit [($225.00 - $161.00) * 10 shares].

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially as Snowflake's stock is still trading well below its record high and initial public offer price.

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admiral Markets Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Snowflake stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

However, there is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall.

How to Buy Snowflake Stock in 4 Steps  

With Admiral Markets, you can buy shares with a commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

  1. Open an account with Admiral Markets to access the dashboard.
  2. Click on Trade or Invest on one of your live or demo accounts to open the web platform.
  3. Search for your stock in the search window at the top.
  4. Input your entry, stop-loss and take profit levels in the trading ticket.
Source: Admiral Markets MetaTrader 5 Web. Snowflake. Monthly. Date: September 2020 to November 2024, captured on 26 November 2024. Last five-year performance not available. Past performance is not a reliable indicator of future results or future performance.

 

Click on the banner below to trade Snowflake stock today ▼▼▼ 

Do You See the Snowflake Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.

If you believe there is a higher chance Snowflake share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admiral Markets also provide.

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.

This means you can trade long and short to speculate on rising and falling stock prices.

INFORMATION ABOUT ANALYTICAL MATERIALS: 

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admiral Markets investment firms operating under the Admiral Markets trademark (hereinafter “Admiral Markets”) Before making any investment decisions please pay close attention to the following: 

  • This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  • Any investment decision is made by each client alone whereas Admiral Markets shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
  • With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
  • The Analysis is prepared by an independent analyst Jitanchandra Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.
  • Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
  • Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
  • Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.