Should You Buy?

SnowFlake (NYSE: SNOW)

Snowflake shares have surged nearly 95% YTD, but high valuation and recent heavy selling suggest cautious, long-term investment.

Sep. 1, 2025

By Sophia Chen

SnowFlake (NYSE: SNOW)

Carbrey, J., & Baldwin, S. (n.d.). Retrieved September 1, 2025,. 

Over the past four months, Snowflake shares have advanced to nearly 95% from their YTD low on April 4. As of September 1st, the stock is valued at 238.66 USD, however, analysts believe it has the potential to rise to 275 USD –an estimated 15% gain– by the end of 2025, as more customers are showing interest in Cortex, the company’s suite of AI. 

Investors should be cautious about the valuation for Snowflake though, as it hit a one-year high, having a price-to-sales ratio of 20.8. This makes the company far more expensive than other leading cloud providers. Due to this, investors may have to hold onto their shares for a longer amount of time than usually desired, usually projected to be around five years, before they are able to get desired returns.

The last 100 trades were the following: 1.89 million shares bought and 4.43 million sold. The most recent trade, by Benoit Dageville four days ago, was a sale of 3,750 shares. Although there can be many reasons that investors are selling, the ratio can generally be considered as a negative sign.