Snowflake Stock (SNOW) Jumps on $250M AI Deal

Artificial intelligence (AI) data company Snowflake (SNOW) has announced its intention to acquire open-source Postgres technology and products company Crunchy Data. Financial details of the deal weren’t revealed, but reports claimed Snowflake will pay $250 million to bring Crunchy Data into its fold.

The combination of Snowflake and Crunchy Data will bring Snowflake Postgres to the AI Data Cloud. PostgreSQL is a popular development tool used by 49% of developers. It assists with the creation of AI agents and apps.

Snowflake’s decision to buy Crunchy Data comes amid increased demand for AI agents. The company wants to tap into this demand with its Crunchy Data purchase. Rival data company Databricks made a similar purchase last month when it announced plans to buy Neon for an estimated $1 billion.

Snowflake Stock Movement

SNOW stock investors appear pleased with the Crunchy Data investment. The shares were up 2.19% yesterday, which is when the announcement was made. Snowflake stock was also largely unmoved today, remained up 36.11% year-to-date, and has rallied 53.41% over the past 12 months.

The latest analyst coverage of SNOW stock comes from five-star Argus Research analyst Joseph Bonner. He reiterated a Hold rating for Snowflake shares last week and didn’t provide a price target. Bonner has a 66% success rate and an average return of 14.01%.

Is Snowflake Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Snowflake is Strong Buy, based on 33 Buy and seven Hold ratings over the past three months. With that comes an average SNOW stock price target of $220.54, representing a potential 4.93% upside for the shares.

See more SNOW stock analyst ratings