Watch These Snowflake Price Levels as Stock Pops After Strong Earnings

Snowflake Inc. (NYSE: SNOW), the AI Data Cloud company, has seen its stock price surge following the release of its fourth-quarter and full-year fiscal 2025 earnings. The company reported strong revenue growth and a solid net revenue retention rate, which has led to a significant increase in its stock price. As investors look to capitalize on this momentum, it's essential to keep an eye on specific price levels to identify potential entry and exit points.

Strong Earnings Performance

Snowflake's fourth-quarter fiscal 2025 earnings report was a significant catalyst for its stock price surge. The company reported a 27% year-over-year growth in revenue, reaching $986.8 million. This growth rate exceeded analyst expectations, which were around 20% to 22%. Additionally, Snowflake's net revenue retention rate was 126%, down slightly from the previous quarter but still indicating strong customer satisfaction and loyalty. The company's remaining performance obligations (RPOs) were $6.9 billion, representing a 33% year-over-year growth, suggesting that customers are committing to long-term contracts.

AI Integration and Innovation

Snowflake's strong earnings performance can be attributed to its continuous investment in AI technology, such as Snowpark and Snowflake Cortex. These innovations position the company to capitalize on the growing demand for AI-related products and services. As a result, Snowflake has seen significant growth in Snowpark adoption, surging 47% quarter-over-quarter (QoQ). Additionally, more than 30% of Snowflake's customers are now using the platform to process unstructured data, further mitigating the consumption normalization headwinds that affected its growth momentum.

Price Levels to Watch

As Snowflake's stock price surges following its strong earnings report, investors should keep an eye on specific price levels to identify potential entry and exit points. The following price levels are crucial to watch:

1. Support Levels: Investors should pay close attention to the support levels that have held in the past. These levels can provide a solid foundation for the stock price to bounce back from if it encounters a pullback. Some key support levels to watch include:
* $166.19 (the stock's price before the earnings release)
* $154.41 (the stock's price in late January 2025)
* $142.77 (the stock's price in mid-July 2025)
2. Resistance Levels: Resistance levels represent price levels that have previously acted as barriers to the stock's upward momentum. If the stock price approaches these levels, it may encounter selling pressure, which could lead to a pullback. Some key resistance levels to watch include:
* $196.45 (the stock's average 12-month price target)
* $206.24 (the average price target of 31 Wall Street analysts)
* $235.00 (the highest price target of any analyst)



Conclusion

Snowflake's strong earnings performance, driven by its AI integration and innovation, has led to a significant surge in its stock price. As investors look to capitalize on this momentum, it's crucial to keep an eye on specific price levels to identify potential entry and exit points. By monitoring support and resistance levels, investors can make more informed decisions about when to buy or sell Snowflake stock.