Should You Buy The Dip In Snowflake Stock?
If you watched Snowflake (SNOW) stock slide in October, you may be wondering whether to buy it now or wait for a lower price. The shares closed at $315.35 on October 19, 2026, down 14.5% from their high on October 9. Its biggest one-day fall since that high came on October 16, when it lost 8.4%. So what happened after Snowflake stock’s past sharp drops?
How Did Snowflake Stock Do After Past Drops?
Snowflake stock has ended up anywhere from 46% lower to 67% higher a year after a sharp drop. Since September 2020, the shares have fallen more than 20% within 30 trading days on 10 occasions. Eight of those drops occurred more than a year ago. The stock was higher a year later after four of them. The median change over that year was 0.5%. The two latest drops, in December 2025 and April 2026, are too recent to judge.
Holding on through that year took patience. In the year following a typical drop, the stock’s lowest close was a median 14.1% below its price on the day of the drop. Yet the best price in that year reached a median 55.9% above the dip-date price. That peak arrived a median 277 days later, about nine months on.
| Time after a past dip | Past dips with that much time after them | Median SNOW price change |
|---|---|---|
| 21 trading days | 10 | 3.0% |
| 63 trading days | 10 | 2.0% |
| 126 trading days | 10 | 21.5% |
| 252 trading days | 8 | 0.5% |
| Dip date | SNOW price change over the 30 trading days to the dip date | SPY price change over the same days | SNOW price change 252 trading days after the dip date | Highest price in those 252 trading days, against the dip-date price | Calendar days to that highest price | Lowest price in those 252 trading days, against the dip-date price |
|---|---|---|---|---|---|---|
| 2026-04-09 | -21.8% | -2.0% | window not complete | window not complete | window not complete | window not complete |
| 2025-12-15 | -21.7% | 0% | window not complete | window not complete | window not complete | window not complete |
| 2025-03-28 | -21.8% | -9.0% | 1.0% | 84.0% | 220 | -13.3% |
| 2024-06-18 | -22.0% | 6.0% | 67.0% | 67.5% | 370 | -14.9% |
| 2024-03-08 | -21.2% | 5.0% | -6.0% | 18.7% | 347 | -33.2% |
| 2023-03-17 | -23.8% | -6.0% | 16.0% | 74.0% | 334 | -0.6% |
| 2022-11-04 | -23.1% | 2.0% | 21.0% | 44.3% | 223 | -8.1% |
| 2022-01-20 | -23.1% | -4.0% | -46.0% | 11.4% | 21 | -59.4% |
| 2021-03-08 | -25.1% | 0% | -10.0% | 87.8% | 253 | -12.0% |
| 2021-01-20 | -27.3% | 4.0% | 0.0% | 42.6% | 300 | -33.2% |
| Median of 8 complete windows | – | – | 0.5% | 55.9% | 277 | -14.1% |
Is Snowflake’s Business Getting Stronger?
Snowflake’s sales are growing faster, but the company still loses money. Revenue for fiscal Q2 2027, the quarter ended July 31, 2026, grew 35.1% from a year earlier, up from 31.8% growth in the same quarter a year prior. Management said on the September 2 call that product revenue growth had accelerated for a third straight quarter. Over the same quarter, the operating loss narrowed to 17.0% of revenue, from 29.7% a year earlier. Over the last twelve months, the business brought in cash from operations equal to 23.1% of revenue.
You pay a high price for that progress. The stock trades at 20.3 times sales, against 3.1 for the S&P 500, and it has no meaningful P/E with no profit to measure. Management also lowered its fiscal 2027 guide for adjusted product gross margin to 74%, from 75%, saying the new outlook includes more revenue from fast-growing AI workloads, whose margin is lower today. For fiscal Q3 2027, management expects product revenue growth of 37% to 38%. Snowflake is expected to report on or around December 1, 2026.
The Worst Year For A Snowflake Dip Buyer
The worst outcome followed the drop of January 20, 2022. The stock was 46% lower a year later, closing 59.4% below its dip-date price at one point during that year. That drop occurred when Snowflake was a smaller company with deeper losses, but buyers today must accept that a sharp fall in this stock has continued for a full year before.
For that risk to be worth taking at a valuation far above the market’s, Snowflake has to keep growing sales faster while its loss keeps narrowing. Snowflake’s product revenue growth is the number to watch in the report expected on or around December 1.
Does This Mean You Should Act On SNOW?
Our purpose is to inform you with unique data so you make the right investment decisions. That said, betting on a single stock is always risky, no matter which direction you choose.
There is a smarter approach. Since its inception, the Trefis High Quality (HQ) Portfolio has returned 105%, beating the benchmark that combines the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000. And it did so without taking the concentrated risk that comes with do-it-yourself stock picking. If that is how you want to invest, the HQ Portfolio is the place to start.
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