Software Sector Shaken by AI Disruptors
The software industry is grappling with disruption fears following the release of advanced AI models. Concerns are mounting that agentic workflows could compress pricing power for legacy SaaS platforms.
Economic Growth Stalls
Macroeconomic headwinds are further dampening the mood for growth stocks. According to the Bureau of Economic Analysis, U.S. GDP grew at an annualized rate of just 0.5% in the fourth quarter of 2025. This marks a deceleration from the 4.4% pace recorded in the third quarter.
Inflation, Geopolitical Tensions Weigh
Inflation remains a persistent thorn for the Federal Reserve. The Core PCE price index hit 3.0% annually, which is 1% above the Fed’s target.
Snowflake Technical Analysis
At $134.49, SNOW is trading 17.9% below its 20-day simple moving average (SMA), the stock’s average price over the last 20 sessions, which suggests the near-term trend is still pointed down. It’s also trading 33.1% below its 100-day SMA, indicating the intermediate trend remains decisively bearish.
The relative strength index (RSI), a momentum gauge, is 34.28, and it dipped into oversold territory (
Over the last 12 months, the stock is down 11.20%, which is backward-looking but consistent with a longer stretch of distribution. SNOW is also hovering just above its 52-week low of $129.85, a spot where traders often watch for either stabilization or a breakdown.
- Key Resistance: $163.50 — near the 20-day SMA area where rebounds have recently failed.
- Key Support: $130.00 — near the 52-week low zone where buyers may try to defend.
SNOW Stock Price Activity: Snowflake shares were down 10.31% at $149.56 at the time of publication on Thursday, according to Benzinga Pro data.
Photo by Michael Vi via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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