What Happened?
Shares of cloud data platform provider Snowflake (NYSE: SNOW) jumped 3.4% in the afternoon session after the company announced that OpenAI's latest model, GPT 5.5, became available on its Snowflake Cortex AI platform.
As a launch partner with OpenAI, Snowflake provided same-day availability of the new model in a private preview. This integration made GPT 5.5 accessible within Snowflake's secure environment for use with its suite of AI tools.
The positive development seemed to overshadow news about a deadline for a federal securities class-action lawsuit filed against the company. Some analysts noted that the litigation was a known issue and did not alter the company's business trajectory.
After the initial pop the shares cooled down to $145.66, up 4.6% from previous close.
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What Is The Market Telling Us
Snowflake’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 4.5% as investors continued to buy the dip despite renewed geopolitical jitters as the U.S.-Iran ceasefire came under doubt following the seizure of the Iranian vessel Touska.
While the fragile peace remained in question ahead of the ceasefire deadline later in the week, the software sector rebounded from a harsh "valuation reset" catalysed by AI fears. High-growth names like Datadog and ServiceNow led the charge as markets continued to decouple from Middle Eastern energy volatility. This resilience reflected a growing conviction that enterprise software remains a core structural winner, regardless of short-term macro turbulence.
Snowflake is down 32.8% since the beginning of the year, and at $145.66 per share, it is trading 47.4% below its 52-week high of $277.14 from November 2025. Investors who bought $1,000 worth of Snowflake’s shares 5 years ago would now be looking at only $611.59.
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