Tech share soars by 20% today, possibly poised for a 42% increase.
Snowflake, the cloud-based data warehousing company, has seen a significant boost in its stock price after releasing its Q3 2025 earnings report. The tech giant reported revenues of $942 million, $43 million above analysts' estimates, leading to a 20% increase in its stock on Thursday.
The index price of Snowflake's financial instruments is derived from a Boersenmedien AG index that the company holds the rights to. Boersenmedien AG, a leading German financial media company, has been recommending the purchase of Snowflake's shares.
According to analysts following Snowflake's Q3 earnings report, the upside potential for Snowflake stock is around 17% to 25% from current levels. The average analyst target price is around $218.20 to $220, suggesting limited downside risk, but with upside potential to about $265 per share, implying approximately 17%+ upside from recent prices near $210–$220. Some analysts, such as Loop Capital, have set more aggressive price targets up to $245, representing about 17% to 25% upside from the mid-$210 range.
Stifel Research maintains a $220 price target with a buy rating, highlighting additional upside potential from new products and an improved relationship with Microsoft Azure, which could increase revenue opportunities. Analysts predict up to 42% more upside potential for Snowflake's stock, with Goldman Sachs also forecasting a similar upside.
The bullish case for Snowflake revolves around its strong cloud data platform dominance and AI-driven growth strategy. Analysts expect AI-related revenue to contribute an additional $500 million annually by 2026, and margin improvements to 8%+ in FY2026. However, the stock faces risks such as hyperscaler competition and regulatory challenges.
Snowflake's Q4 revenue outlook for 2022 is higher than the $890 million previously expected, with a projected range of $906 million to $911 million. This outlook exceeds analysts' expectations and suggests a promising future for the company.
In summary, analysts see 17% to 42% upside potential for Snowflake stock based on current valuations and growth prospects following the Q3 earnings report. This makes the stock attractive for long-term growth investors, although it may also come with some short-term volatility risk. Boersenmedien AG receives remuneration from Snowflake under the cooperation agreement, granting the company a license to use the index. Snowflake's stock has fallen by 35% this year, but the positive Q3 earnings report and optimistic outlook for Q4 may signal a turnaround for the company.
Investing in Snowflake's stock could yield up to 25% returns, as predicted by some analysts, given the upside potential of its AI-driven growth strategy and continued expansion in the technology sector. The index price of Snowflake's financial instruments is affiliated with a Boersenmedien AG index, a leading German financial media company that recommends purchasing Snowflake's shares.
