Snowflake Shares Garner Bullish Outlook from Market Experts

Snowflake Inc. is entering the new year with significant momentum, having been one of the most frequently upgraded equities on Wall Street throughout 2025. The data cloud company's positive trajectory is further fueled by intensifying reports of a potential multibillion-dollar acquisition in the artificial intelligence sector.

The optimistic sentiment stems from a fundamentally strong fiscal 2025. The company's stock value climbed 42% over the past year, a rally driven by a series of consistently impressive quarterly earnings reports. In its most recent financial release dated December 3, 2025, product revenue outperformed expectations, reaching $1.16 billion and representing a 29% year-over-year increase.

A temporary share price decline of 11% in mid-December followed management's cautious guidance for the fourth quarter. However, the multitude of analyst upgrades suggests the market is placing greater emphasis on Snowflake's long-term AI strategy than on near-term margin fluctuations. A critical metric, the AI product revenue run-rate, surpassed the $100 million milestone a full quarter ahead of the company's internal schedule.

Should investors sell immediately? Or is it worth buying Snowflake?

Strategic Moves and Insider Transactions

Market attention is also focused on persistent rumors regarding the potential acquisition of AI startup Observe for approximately $1 billion. Industry observers view this potential deal as a strategic move to embed AI-powered analytics capabilities natively into the Snowflake data platform.

This period of strategic development coincides with notable insider activity. An SEC Form 144 was filed on January 2, 2026. Prior to that, Executive Vice President Christian Kleinerman sold 4,755 shares on December 23, 2025, at an average price of $224.30 per share.

The next significant catalyst for the stock is likely to be the quarterly earnings report scheduled for March 3, 2026. Analysts anticipate further details on the potential Observe acquisition and an updated assessment of AI's contribution to revenue. From a technical analysis perspective, the shares are currently testing key resistance levels around $225; a decisive break above this zone could confirm the continuation of the prior year's upward trend.