What Happened?
Shares of cloud data platform provider Snowflake (NYSE: SNOW) fell 10.2% in the afternoon session after a broader sell-off in the enterprise software sector hit the company.
The decline was part of a sector-wide repricing event, spurred by growing concerns that the emergence of “agentic AI” from companies like Anthropic and OpenAI threatened the traditional Software-as-a-Service (SaaS) business model.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Snowflake? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Snowflake’s shares are quite volatile and have had 19 moves greater than 5% over the last year. But moves this big are rare even for Snowflake and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 8.5% on the news that reports of a ceasefire breach in the Middle East spiked market volatility as fears grew that a fragile U.S.-Iran truce would unravel.
This tension was compounded by Anthropic’s launch of Managed Agents, autonomous AI systems that execute complex tasks. Traders were worried these would disrupt the traditional SaaS (Software as a Service) model, by replacing human-operated tools with more efficient AI workers. The sell-off intensified after short seller Michael Burry claimed (in a deleted social media post) Anthropic was "eating Palantir’s lunch." Burry’s comments highlighted the vulnerability of legacy platforms to Anthropic’s AI solutions.
Snowflake is down 45.1% since the beginning of the year, and at $119.04 per share, it is trading 57% below its 52-week high of $277.14 from November 2025. Investors who bought $1,000 worth of Snowflake’s shares 5 years ago would now be looking at only $510.03.
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