Snowflake Inc. (NYSE:SNOW) stock rebounded Monday after a sharp selloff Friday, as investors returned to technology stocks following last week's AI infrastructure rout.
The earlier decline came amid concerns over rising debt levels and the cost of funding AI infrastructure. A Gartner report warning about the long-term outlook for neocloud providers added to investor uncertainty.
Meanwhile, broader market gains supported Monday's recovery. The Nasdaq Composite rose 1.59%, while the S&P 500 gained 0.67%. The technology sector led the market with a 1.87% advance.
Wall Street Remains Bullish on Snowflake
Despite recent volatility, Wall Street analysts remain bullish on Snowflake.
Of the 35 analysts covering the stock, one rates it Strong Buy, 31 recommend Buy and three have Neutral or Hold ratings.
The consensus rating stands at Buy, with an average price forecast of $402. That suggests a potential upside of about 27% from current levels.
Recent analyst actions also reflect confidence in the company's outlook.
On Oct. 12, Needham maintained its Buy rating and $450 price forecast. Meanwhile, Goldman Sachs reiterated its Buy rating on Sept. 4 and raised its price forecast to $436. Macquarie maintained its Neutral rating but increased its price forecast to $350.
Technical Analysis
Snowflake remains in a longer-term uptrend despite recent selling pressure.
The stock trades 6.9% above its 100-day simple moving average (SMA) and 35.7% above its 200-day SMA.
Additionally, a golden cross formed in July, when the 50-day SMA moved above the 200-day SMA. This pattern typically signals positive long-term momentum.
However, the near-term outlook remains cautious.
Shares trade 5.8% below the 20-day SMA and 4.4% below the 50-day SMA, suggesting that short-term selling pressure persists.
A sustained move above these averages could strengthen the recovery. Conversely, failure to regain those levels could expose the stock to further declines.
Traders are watching $348.50 as a key resistance level, while $317 serves as immediate support.
SNOW Stock Price Activity: Snowflake shares gained 3.30% to $316.97 at the time of publication Monday, according to market data.
