History Says Snowflake Stock Could Fly Even Higher
Shares of Snowflake (SNOW) are moving 0.3% lower to trade at $205.77 this afternoon, but earlier touched a fresh annual high of $209.29 after its composite rating saw a lift to 96. Yesterday brought news of a partnership between the IT name and the 2028 Los Angeles Olympics, and on May 22, the stock enjoyed a post-earnings pop of 13.4%. Despite its now 33% year-to-date profit, SNOW remains significantly below its December 2020 record peak of $390. However, a flashing bull signal could mean further gains for the tech giant.
Daily chart of SNOW since May 2024
LSEG Workspace
Specifically, SNOW is sporting low implied volatility (IV) while sitting within 2% of a 52-week high, as demonstrated by its Schaeffer's Volatility Index (SVI) of 38%, which ranks in the low 16th percentile of its annual range. Per Schaeffer's Senior Quantitative Analyst Rocky White, the equity saw two similar signals in the past three years, after which it was higher one month later both times with an average 3.9% gain.
Meanwhile, puts are more popular than usual in the options pits. This is per Snowflake stock's 50-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands in the 86th percentile of annual readings. Should this bearish sentiment begin to unwind, it could act a tailwind for the shares.
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