Snowflake Stock Drop Looks Sharp, But How Deep Can It Go?
Snowflake (SNOW) stock is down 16.5% in 21 trading days. The recent slide reflects renewed concerns around decelerating product revenue growth and its stretched valuation, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Snowflake stands today.
- Size: Snowflake is a $74 Bil company with $4.4 Bil in revenue currently trading at $216.71.
- Fundamentals: Last 12 month revenue growth of 28.5% and operating margin of -34.3%.
- Liquidity: Has Debt to Equity ratio of 0.04 and Cash to Assets ratio of 0.41
- Valuation: Snowflake stock is currently trading at P/E multiple of -54.5 and P/EBIT multiple of -55.3
- Has returned (median) -0.7% within a year following sharp dips since 2010. See SNOW Dip Buy Analysis.
These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Relatively Expensive. For details, see Buy or Sell SNOW Stock
That brings us to the key consideration for investors worried about this fall: how resilient is SNOW stock if markets turn south? This is where our downturn resilience framework comes in. Suppose SNOW stock falls another 20-30% to $152 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
2022 Inflation Shock
- SNOW stock fell 71.8% from a high of $401.89 on 16 November 2021 to $113.30 on 13 June 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $277.14 on 3 November 2025 , and currently trades at $216.71
| SNOW | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -71.8% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
2020 Covid Pandemic
- SNOW stock fell 27.8% from a high of $390.00 on 8 December 2020 to $281.40 on 31 December 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 15 November 2021
| SNOW | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -27.8% | -33.9% |
| Time to Full Recovery | 319 days | 148 days |
Feeling jittery about SNOW stock? Consider portfolio approach.
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