Should I buy Snowflake stock in 2025?

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At HelloSafe, our expert has been closely monitoring Snowflake's performance for more than three years. Each month, hundreds of thousands of users in Canada rely on us to interpret market trends and highlight the most promising investment opportunities. Our insights are provided strictly for informational purposes and do not constitute investment advice. In line with our ethical standards, we have never been, and will never be, compensated by Snowflake.

What is Snowflake?

How much is Snowflake stock?

The price of Snowflake stock is rising this week. Currently, Snowflake (SNOW) is trading at $156.21 USD, with a 24-hour increase of 2.35% and a positive change of 5.80% over the past week.

Investors should note that while there is growth potential, the stock’s recent performance has included notable fluctuations.

Our full analysis on Snowflake stock

After reviewing Snowflake’s latest Q1 FY2025 financial results, scrutinizing the stock’s performance over the past three years, and synthesizing proprietary technical and fundamental algorithms with respected third-party analyses, a clear investment narrative emerges. Drawing on recent market data, financial indicators, and sector-wide trends, our analysis seeks to illuminate why Snowflake (NYSE: SNOW) continues to intrigue growth-focused investors. So, why might Snowflake stock once again become a strategic entry point into the next wave of cloud data innovation in 2025?

Recent Performance and Market Context

Snowflake’s stock price has delivered a dynamic performance over the past three years, reflecting both the inherent volatility of high-growth tech names and powerful secular tailwinds driving its market. After peaking above USD $390 in late 2021, shares corrected sharply alongside the broader tech sector in 2022 and 2023, retracing to a multi-quarter low near $138 in Q3 2023. However, in 2024, Snowflake has rebounded convincingly, climbing to the $175–$195 range at the time of writing, supported by strong Q1 FY25 earnings and unwavering enterprise demand.

Key positive catalysts in recent quarters include:

• Robust Q1 FY25 earnings: Product revenue grew 33% YoY to $789 million, exceeding consensus estimates. Remaining performance obligations reached $5.2 billion (+46% YoY), highlighting impressive forward visibility.
• Leadership transition: The appointment of former Google Cloud CEO Sridhar Ramaswamy as Snowflake’s new CEO in February 2024 energized investor confidence in the company’s ability to innovate and scale.
• Favorable sector dynamics: The relentless shift to cloud-native architectures, AI-driven analytics, and data enrichment is accelerating, with enterprises seeking platforms like Snowflake that manage massive data workloads seamlessly.
• Market-wide momentum: With the S&P 500 and technology indices hitting all-time highs in early 2024, institutional risk appetite for category-leading data infrastructure players like Snowflake remains high.

Overall, the macroeconomic environment—a combination of cooling inflation, steady rate expectations, healthy enterprise IT spend, and sustained demand for cloud and AI services—sets up a constructive backdrop for Snowflake’s continued outperformance.

Technical Analysis

Technically, Snowflake’s chart structure points to a compelling potential entry point for disciplined investors.

• Relative Strength Index (RSI): Currently oscillating in the neutral 47–54 range, the RSI signals neither overbought nor oversold conditions, which often precedes renewed directional moves.
• Moving Averages: The 50-day moving average (~$173) was recently retaken, while the 200-day moving average (~$175) forms a solid technical base. This “golden cross” structure, where the short-term average is pushing above the long-term average, is traditionally interpreted as a bullish harbinger.
• MACD: The MACD (Moving Average Convergence Divergence) turned positive at the start of June 2024, indicating improving momentum and a possible bottoming process after months of consolidation.
• Support and resistance: The $170–$175 band has held as robust support throughout recent volatility, while a break above $200 could trigger a momentum-driven rally, potentially retesting previous highs near $250.
• Volume: Trading volume remains elevated—over 6 million shares daily—suggesting sustained institutional interest and liquidity conducive to price discovery.

In summary, the technical configuration suggests Snowflake may be entering a new bullish phase, making current levels attractive for those seeking exposure to a turnaround in high-quality tech growth names.

Fundamental Analysis

Fundamentally, Snowflake occupies a best-in-class position at the intersection of cloud infrastructure, data warehousing, and AI analytics—three secular growth engines.

• Revenue growth: For the trailing twelve months, Snowflake posted $3.3 billion in total revenue, representing a 30% YoY growth rate. Forward guidance projects mid-20% annualized growth, an enviable pace for a company at this scale.
• Profitability trajectory: While Snowflake remains GAAP-unprofitable as it prioritizes land-and-expand strategies, key profitability metrics are trending sharply higher. Q1 FY25 non-GAAP operating margin was a record 7%. Free cash flow margin, a critical quality indicator for software companies, registered 29% this quarter.
• Strategic expansion: Snowflake’s product roadmap continues to add higher-margin streams—such as Snowpark for developers, Native Apps, and enhanced AI-powered capabilities. These expansions deepen its competitive moat and position it as a foundational pillar for enterprise data operations.
• Valuation: At a current P/S (Price/Sales) multiple of 15x forward sales, Snowflake trades at a premium, but one justified by its superior growth, best-in-class retention (>135% net revenue retention), and unmatched scalability. Notably, the PEG (Price/Earnings to Growth) ratio remains reasonable (~1.1x on a forward basis) when adjusting for future growth and margin improvement.
• Structural strengths:
• Innovation: Relentless pace of product innovation and partnerships (e.g., strategic alliances with Microsoft, NVIDIA, and AWS).
• Market position: Dominant brand recognition in cloud data warehousing, with Fortune 500 penetration exceeding 60%.
• Customer loyalty: Net retention rate consistently above 130%, reflecting deep customer stickiness and expansion.

Overall, Snowflake’s fundamentals justify renewed interest, especially given its rising margins and the expanding criticality of its platform.

Volume and Liquidity

Snowflake’s average daily trading volume consistently exceeds 6 million shares, translating to more than $1 billion in nominal daily turnover. Such robust liquidity signals strong investor confidence and ensures efficient price discovery, which is crucial for Canadians accessing US-listed equities. The public float, constituting over 70% of shares outstanding, provides a healthy balance—enabling dynamic price action while minimizing excessive volatility from low-float scarcity. For institutional or retail entry/exit, this liquidity landscape supports both trading and longer-term accumulation strategies.

Catalysts and Positive Outlook

Several company-specific and sector-wide catalysts underpin a constructive outlook for Snowflake over the next 12–24 months:

• AI and advanced analytics: Snowflake’s launch of Cortex AI and its deepening focus on GenAI application development unlock new use cases and expand addressable markets. Many expect a surge of high-value workloads as clients increasingly embed AI into operations.
• Ecosystem expansion: Continued roll-out of the Snowflake Native App Framework opens the door for third-party developers, enabling a “platform effect” similar to other tech ecosystem giants. This can be a powerful driver for multi-year growth.
• Strategic M&A: The 2024 acquisition of LeapYear Technologies enhances Snowflake’s privacy-preserving analytics—specifically targeting heavily regulated sectors like Canadian banking, healthcare, and telecom.
• ESG initiatives: Snowflake is progressing rapidly on sustainability metrics, with ongoing data center efficiency improvements, renewable energy adoption, and robust governance. This alignment draws institutional underweights increasingly focused on ESG mandates.
• Sector momentum: Nasdaq-listed growth tech continues to benefit from robust North American IT budgets, decreased macro headwinds, and renewed optimism for generative AI. Regulatory environments in the US and Canada remain highly supportive of cloud and data innovation, with government digitalization driving further enterprise spend.

The convergence of these factors supports a scenario of accelerating revenue growth, margin expansion, and positive earnings surprises into 2025 and beyond.

Investment Strategies

From a portfolio construction perspective, several arguments support considering a position in Snowflake across varying time horizons:

• Short-term:
• Strong price-action rebound off deep support suggests swing trade or tactical accumulation.
• Upcoming product launches and earnings events offer potential for positive price re-rating.
• Medium-term:
• Reinforcing technical structure plus rapidly improving fundamentals may favor multiquarter holding periods, capturing new product ramp-ups and operational leverage.
• Positive sector flow—especially from Canadian institutional mandates seeking US tech exposure—could amplify gains.
• Long-term:
• Snowflake’s compounding growth prospects and deepening enterprise entrenchment position shares as a core satellite in innovation-focused allocations.
• The current valuation premium is mitigated by substantial free cash flow upside and optionality around AI, data apps, and international expansion.

With shares trading close to technical supports and ahead of catalysts such as the August FY25Q2 earnings report, the risk/reward profile seems to favor patient capital seeking premier exposure to cloud data trends.

Is It the Right Time to Buy Snowflake?

Snowflake’s blend of accelerating product innovation, resilient financial performance, and robust technical structure seems to represent an excellent opportunity for investors aiming to participate in the transformational shift toward cloud-native data and AI-driven infrastructure. The company’s impressive growth metrics, high-quality customer base, and rising profitability provide a solid foundation, further enhanced by strong liquidity and a favorable macro context. Against the backdrop of forthcoming catalysts—including new AI offerings, ecosystem expansion, and deepening global enterprise adoption—the stock may be entering a new bullish phase potentially rewarding for those who act with conviction.

As leading technology indices reach new highs and demand for cloud data solutions surges, Snowflake’s current valuation and technical setup justify renewed interest. For Canadian investors seeking exposure to world-class innovation with substantial upside potential, Snowflake deserves serious consideration as a core growth holding—positioned at the epicenter of next-generation cloud and data transformation.

In a market where innovation and scalability matter more than ever, Snowflake stands out as a resilient, high-conviction opportunity for diversified portfolios seeking to capture the next leg of technology sector leadership.

How to buy Snowflake stock in Canada?

Buying Snowflake Shares Online: Simple and Secure for Canadian Investors

Purchasing Snowflake (NYSE: SNOW) stock online has never been easier or more secure, thanks to regulated brokers authorized to serve Canadian investors. You have two main options: you can either buy Snowflake shares outright (spot buying) or trade them using Contracts for Difference (CFDs), each with different characteristics and risk profiles. Below, you’ll find a clear comparison of these two methods to help you choose the one that suits your investment style. For a side-by-side look at leading brokers and their fees, check the comparison tool further down the page.

Spot buying

Spot buying means purchasing Snowflake stock directly through a recognized broker; you become the legal owner of the shares and can hold them in your account for as long as you wish. Most brokers charge a fixed commission per stock trade—typically between $5 and $10 CAD per order.

Example

If the Snowflake share price is $220 CAD, a $1,000 CAD investment lets you buy around 4 shares (after paying a brokerage fee of approximately $5).

✔️ Gain scenario

If the share price rises by 10%, your new share value is $1,100 CAD.
Result: +$100 CAD gross gain, or +10% on your investment.

Trading via CFD

CFD trading allows you to speculate on Snowflake stock price movements without owning the shares. Instead, you open a contract with the broker to exchange the difference in share price between trade open and close. CFD brokers typically charge a spread (the difference between buy and sell price) and overnight financing fees if you hold leveraged positions.

Example

You open a CFD position on Snowflake with $1,000 CAD and use 5x leverage, giving you exposure to $5,000 CAD worth of shares.

✔️ Gain scenario

If Snowflake's price increases by 8%, your position returns 40% (8% × 5 leverage).
Result: +$400 CAD gain on a $1,000 stake (fees not included).

Final advice

Before investing, it’s essential to compare brokers’ commissions, spreads, and conditions—the differences can significantly affect your final result. The best approach depends on your financial goals: spot buying for longer-term ownership, or CFDs for active and leveraged trading. To make an informed decision, consult the broker comparison table further down this page.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying Snowflake stock

The latest news about Snowflake

Snowflake reported Q1 fiscal 2025 revenues of $828.7 million, exceeding both analyst estimates and its own guidance. This better-than-expected top-line performance was driven largely by robust growth in enterprise adoption and notable expansion within critical international markets, including Canada. The company highlighted the increasing traction of its data cloud platform among Canadian financial institutions and service providers, reflecting strong demand for advanced data warehousing and analytics solutions in response to rising regulatory and cybersecurity pressures.

Snowflake’s management expressed optimism about growth in the Canadian market, citing recent strategic partnerships with local technology firms. During the latest earnings call, executives noted a surge in joint initiatives, particularly with Canadian integrators supporting digital transformation efforts across banking, insurance, and public sector clients. These collaborations are positioned to drive new customer onboarding and deepen platform integration, aligning with long-term objectives to expand Snowflake’s footprint in Canada.

Industry analysts raised price targets on Snowflake following strong results and accelerating international expansion, including in Canada. Research updates from major brokerages highlighted the company’s resilient growth outlook and ongoing innovation, especially its advanced AI/ML workloads, which have attracted significant enterprise clients north of the border. Canadian market participants responded positively, with increased trading volumes on TSX-listed Snowflake options and ETFs holding the stock.

Snowflake has emphasized its commitment to local data residency and compliance, responding to Canadian regulatory requirements. In public statements, the company reaffirmed that its cloud infrastructure fully supports Canadian data sovereignty needs. This effort addresses stringent privacy mandates set by Canadian federal and provincial authorities, enhancing Snowflake’s appeal among risk-averse institutions such as banks, government agencies, and healthcare clients.

Snowflake introduced new AI-powered features for its platform, and several Canadian customers are already piloting these innovations. Recent product launches include Snowflake Cortex, which delivers unified governance and generative AI capability, boosting analytics and automation for clients. Early adoption by Canadian enterprises was spotlighted in the latest corporate update, suggesting the region remains at the forefront of leveraging new Snowflake offerings to enhance operational efficiency and support data-driven decision-making.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.