AI Data Cloud Leader Plummets Nearly 12% in Just One Day

Snowflake Inc. (SNOW), a leading AI data cloud provider, closed on the New York Stock Exchange down 11.78% at $132.32, with trading volume surging well above its average. In a single day, the company’s market capitalization shrank by roughly $4.8 billion (about ₩6.7 trillion), bringing its total valuation to approximately $45.7 billion (around ₩64 trillion).

Snowflake now faces mounting legal risk as the deadline to appoint lead plaintiffs in a securities class-action lawsuit related to the period from June 2023 through February 2024 approaches on April 27. Several law firms have already begun soliciting investors who suffered losses, highlighting the potential for further litigation. This comes on top of reputational damage following a recent data breach and heightened volatility, which has prompted increased put-option activity in the options market and weakened investor sentiment.

Originally built as a cloud-based data warehouse, Snowflake has expanded into an “AI data cloud” platform and now serves more than 13,000 customers worldwide, providing AI and data-analytics infrastructure. In its latest quarter, the company reported over $1 billion in revenue and emphasized an AI-driven growth strategy, including a strategic partnership worth about $200 million with OpenAI. Despite this long-term growth narrative, short-term headwinds from litigation and valuation concerns continue to weigh on the stock.