Our Stock of the Week is Snowflake, Inc. (SNOW). Snow is a cloud-based storage company that provides a platform for the analysis and management of data. It provided storage, data sharing, AI tools, and analytical tools.
The stock is trading down on Monday, along with many other technology stocks, due to the panic created by DeepSeek. However, SNOW may actually be a beneficiary of cheaper AI models like DeepSeek since SNOW customers are more interested in ‘generative AI,’ which creates new content or analyses data from which they already have.
SNOW had a very strong third quarter that caused the stock to gap higher and form a higher-level base. Analysts are very bullish on the stock, with 28 ‘buy’ ratings and 4 ‘hold.’ The top price target is $225 and the low is $180.00 versus the current price of around $169.
Earnings are due out around February 26, and it is likely the market will anticipate another strong quarter. The volatility being created by DeepSeek looks like an opportunity since cheaper large-language AI is likely to create more business for SNOW.
As always, we will not chase the open but will look for opportunities to aggressively trade the stock as the chart develops.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in SNOW. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
