Snowflake (SNOW) Price Prediction and Forecast 2025-2030 (March 2025)

Snowflake (SNOW) Price Prediction and Forecast 2025-2030 (March 2025)

  • 21.03.2025 12:14
  • 247wallst.com
  • Keywords: AI, Cloud Storage, Market Growth

Snowflake Inc. (SNOW) faces challenges but shows potential for growth with its collaboration with NVIDIA and strong customer loyalty. The cloud storage market's projected expansion could drive revenue and EPS increases, though stock price forecasts vary between bearish and bullish projections from 2025 to 2030.

Nvidia ReportsSNOWsentiment_satisfiedGOOGLsentiment_dissatisfiedNVDAsentiment_satisfied
open_in_newOriginal article

Estimated market influence

Snowflake Inc.

Snowflake Inc.

Positivesentiment_satisfied
Analyst rating: Buy

The article discusses Snowflake's strong earnings and revenue growth, positioning it as a leader in cloud storage. It also highlights its partnership with NVIDIA for AI applications, which is expected to drive further growth.

Alphabet Inc.

Alphabet Inc.

Negativesentiment_dissatisfied
Analyst rating: Buy

Mentioned as a competitor to Snowflake through Google BigQuery, but no specific negative impact is detailed.

Amazon Inc.

Negativesentiment_dissatisfied
Analyst rating: N/A

Competitor via Redshift, but article doesn't specify negative impact on Snowflake.

NVIDIA

NVIDIA

Positivesentiment_satisfied
Analyst rating: Strong buy

Partnership with Snowflake to integrate AI solutions, enhancing their offerings and market position.

Pfizer Inc.

Neutralsentiment_neutral
Analyst rating: N/A

A loyal customer of Snowflake, but no direct impact on the company's performance discussed.

Petco Health and Wellness Company Inc.

Neutralsentiment_neutral
Analyst rating: N/A

Loyal customer, but no specific impact mentioned.

Context

Analysis of Snowflake (SNOW) Price Prediction and Market Implications

Key Facts and Data Points

  • Stock Performance:

    • Current share price: $156.86
    • YTD drop: -1.05%
    • Since Sept. 6, 2024: +43.95% gain

  • Market Cap: $51.88B (as of March 2025)

  • Revenue Growth:

    • 2020: $0.264B
    • 2021: $0.592B (+124%)
    • 2022: $1.22B (+108%)
    • 2023: $2.07B (+69%)
    • 2024: $2.81B (+36%)

  • Net Income: Consistently negative, with losses ranging from -$0.348B (2020) to -$0.836B (2024).

  • Financial Metrics:

    • P/E Ratio: N/A
    • Gross Margin: -35.40%
    • Free Cash Flow: -$199.41M (2020) → $784.29M (2024, +493%)

  • Customer Base:

    • Revenue retention: 127%
    • Clients include Pfizer, Petco Health, Orangetheory Fitness, and government entities.

Industry Growth and Market Trends

  • Cloud Computing Market:

    • Global market size: $602.31B (2023)
    • CAGR: 21.2% (2024–2030)
    • U.S. market CAGR: 20.3%

  • Key Drivers:

    • Hybrid and multi-cloud solutions adoption.
    • Increased cloud usage by private and public enterprises globally.
    • Growth of AI and machine learning applications.

Competitive Landscape

  • Direct Competitors:

    • Google BigQuery (Alphabet Inc.)
    • Amazon Redshift (Amazon Inc.)

  • Strategic Partnerships:

    • Collaboration with NVIDIA to integrate AI Enterprise software, enhancing AI data application capabilities.

Price Predictions and Valuation

Short-Term Forecast (2025)

  • Wall Street Consensus:

    • Rating: 1.96 (Strong Buy)
    • EPS: $0.60
    • Net Income: $214.40M
    • Median price target: $213.40 (+35.92% upside)

  • 24/7 Wall Street Forecast:

    • Price target: $120.00 (-23.57% downside)

Long-Term Forecast (2025–2030)

| Year | Revenue ($B) | EPS | Price Target | % Change from Current Price | |------|--------------|-----|-------------|----------------------------| | 2025 | $3.584 | $0.70 | $120.00 | -23.57% | | 2026 | $4.424 | $0.99 | $135.00 | -14.01% | | 2027 | $5.409 | $1.44 | $150.00 | -4.46% | | 2028 | $6.944 | $2.71 | $178.50 | +13.69% | | 2029 | $8.338 | $3.83 | $242.40 | +54.39% | | 2030 | $10.512 | $4.12 | $251.20 | +60.00% |

Business Insights and Market Implications

  • Strong Earnings Track Record: Snowflake has beaten EPS in 14 out of 15 quarters since Q1 2021, indicating consistent profitability despite losses.
  • Revenue Growth Momentum: Explosive revenue growth (961% CAGR 2020–2024) aligns with the booming cloud computing industry.
  • Fundamental Strength: Despite negative net income, free cash flow has improved significantly, suggesting strong underlying business health.
  • AI and NVIDIA Partnership: Integration of AI capabilities positions Snowflake to capitalize on growing demand for advanced data solutions.
  • Customer Loyalty: 127% revenue retention highlights a loyal client base across diverse industries, reducing churn risk.

Market Risks and Challenges

  • Stock Volatility: SNOW shares have dropped over 60% since hitting an all-time high in 2021, indicating potential investor sentiment risks.
  • Competition: Dominance of tech giants like Amazon and Alphabet poses significant competitive pressure.
  • Regulatory Risks: Potential scrutiny of data storage and AI practices could impact growth.

Strategic Considerations

  • Focus on AI Integration: Snowflake’s partnership with NVIDIA underscores the importance of leveraging AI to differentiate from competitors.
  • Global Expansion: The U.S. market CAGR (20.3%) suggests opportunities for expansion in international markets.
  • Customer-Centric Growth: Maintaining high revenue retention rates will be critical to sustaining growth and attracting new clients.

Long-Term Outlook

Snowflake is well-positioned to benefit from the secular growth of cloud computing and AI-driven data solutions. However, its ability to navigate competition, maintain profitability, and capitalize on emerging trends will determine long-term success. The projected 60% increase in stock price by 2030 reflects optimism about its future prospects, but investors should remain cautious about execution risks and market volatility.