Snowflake Inc. (NYSE:SNOW) reports second-quarter earnings Wednesday afternoon, and one professional chart watcher says two price levels will decide whether the AI-fueled software rally has more room to run — or whether a pullback creates a buying opportunity.
- SNOW stock is moving ahead of earnings. See the real-time price action here.
Woods Sees a Breakout Above $330
Jay Woods, chief market strategist at Freedom Capital Markets, told CNBC that a breakout above $330 could set up a run toward $400.
“If [Snowflake] can break above this level here at 330, watch to see if it can make a run to 400,” Woods said. “Snowflake was the first to gap and go, and now we want to watch to see if it continues that climb higher.”
Shares traded around $310 Monday — roughly 6% below the $330 trigger level and about 23% under the $400 mark, a level SNOW hasn’t closed above since late 2021, when it notched its all-time high closing price.
Watch $290 as Support
The setup comes after a strong 2026 for Snowflake, with shares up 44% year to date, far outpacing the broader software group.
The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) is up just 1.3% over the same stretch. Woods attributes the outperformance to Snowflake’s aggressive investments in expanding its artificial intelligence capabilities alongside solid underlying fundamentals.
That kind of run-up, however, could make the stock vulnerable to a “sell the news” reaction if results disappoint. Woods flagged $290 as the level to watch on the downside.
“If it fails, we do have some support levels,” he said. “Two hundred ninety [is] a good place to dip the toe in the water if Snowflake is to pull back on earnings.”
Wall Street is looking for 45 cents in adjusted earnings per share for the fiscal second quarter, up 28% year-over-year, according to Benzinga Pro estimates.
Traders will be watching whether Snowflake can clear $330 to reignite its climb toward the 2021 highs, or whether $290 becomes the next entry point for buyers.
SNOW Stock Price Activity: Snowflake shares were down 2.9% at $310.52 at the time of publication Wednesday, according to data from Benzinga Pro.
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