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Investing.com -- The broader software complex experienced widespread declines on Friday as fragile investor confidence gave way to a wave of sympathetic selling across the sector. The turn lower continued to arrest a month-long recovery fueled in part by strong corporate results and forward guidance from Snowflake.

The shift in capital allocation reflects a market that remains deeply hypersensitive to any perceived headwind within the enterprise technology layer. Rather than treating recent operational changes at Adobe Systems Incorporated (NASDAQ:ADBE) and heavy capital spending projections at Oracle Corporation (NYSE:ORCL) as isolated events, institutional investors have aggressively unwound positions across the board.

Wall Street analysts noted that Adobe's strategic pivot to a freemium model and Oracle's massive debt-funded data center buildout have fundamentally altered profitability expectations for the near term. Market observers widely concluded that these shifting corporate dynamics are injecting incremental uncertainty into a sector already struggling to defend its valuation multiples.

The iShares Expanded Tech-Software Sector ETF (NYSE:IGV) fell slightly as it looked to close out a punishing week, dropping over 5% over the past five days, worsening a 15% fall over the past year. However, the damage has not entirely wiped out the sector's recent momentum, as the ETF maintains a 1.5% gain over the past month.

Large-cap enterprise names bore the brunt of the algorithmic and fundamental selling pressure as macro anxieties intensified. ServiceNow Inc (NYSE:NOW) slid around 1.5%, while data warehouse pioneer Snowflake Inc (NYSE:SNOW) dropped close to 1% during a volatile trading session.

Industry bellwether Salesforce Inc (NYSE:CRM) fell over 1%, as even the most deeply entrenched customer relationship software models have not been immune to the prevailing market malaise. Intuit Inc (NASDAQ:INTU) also joined the broader retreat, dropping close to 2.5% as investors trimmed exposure ahead of the weekend.

The downward pressure extended deeply into specialized software segments, prompting sharp losses in design and cybersecurity names. Adobe competitor Figma Inc (NYSE:FIG) lost over 6.5%, while Autodesk Inc (NASDAQ:ADSK) and data security provider Rubrik Inc (NYSE:RBRK) dropped 2.5% each as momentum capital rotated away from application layers.

The aggressive de-risking in software occurred against the backdrop of a broader equity stabilization, highlighting a painful performance divergence within technology. Investors actively favored hardware and semiconductor alternatives over application providers, pushing software back into a selective, sideways trading pattern.

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The persistent weakness across these secondary software names underscores deep-seated fears that generative artificial intelligence tools will ultimately compress seat-based subscription pricing. Until the industry can prove these emerging technologies expand the total addressable market rather than cannibalize it, the sector appears poised to struggle for direction.

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Snowflake (NYSE:SNOW) is leading a new Financial Services Working Group under the Open Semantic Interchange initiative, announced at Snowflake Summit 26. The initiative targets standardized, AI-ready data semantics for financial institutions and other highly regulated sectors. New collaborations with Cognizant, Collibra, AtScale, Northern Trust, Thomson Reuters and others were unveiled to support governed, interoperable AI and agentic workflows.

For investors tracking NYSE:SNOW, this move points to a company positioning itself as more than a cloud data warehouse provider. Snowflake is pushing into the role of a shared data and AI coordination layer, where banks, asset managers and data vendors can align their information models for AI agents and automation. That is consistent with broader industry efforts to standardize data for compliance sensitive use cases.

The Open Semantic Interchange work and the new partner integrations provide a structure for Snowflake to sit at the center of how financial firms organize and govern AI ready data. For you as an investor, a key consideration is how deeply these frameworks embed Snowflake into client workflows as AI adoption in regulated sectors evolves.

Stay updated on the most important news stories for Snowflake by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Snowflake.NYSE:SNOW Earnings & Revenue Growth as at Jun 2026

1 thing going right for Snowflake that this headline doesn't cover.

Investor Checklist: What This Means For Snowflake

Quick Assessment

⚖️ Price vs Analyst Target: At US$240.39 versus a consensus target of about US$291.70, the stock sits roughly 18% below where analysts as a group have it. ⚖️ Simply Wall St Valuation: The shares are described as trading close to estimated fair value, so this news may matter more to the narrative than to immediate valuation gaps. ✅ Recent Momentum: A 30 day return of 58.2% shows very strong recent momentum that you should treat with care when judging entry points.

There's only one way to know the right time to buy, sell or hold Snowflake. Head to Simply Wall St's company report for the latest analysis of Snowflake's Fair Value.

Key Considerations

📊 Leading an industry group for AI ready data standards in financial services reinforces Snowflake's pitch as a core coordination platform for regulated data and AI workflows. 📊 Watch how quickly financial institutions and partners operationalize these standards into real workloads, as well as any disclosure on usage trends and deal activity tied to the initiative. ⚠️ Given the recent share price volatility and the company remaining loss making on a net income basis, execution risk around turning this AI interoperability push into disciplined financial outcomes remains important.

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Dig Deeper

For the full picture including more risks and rewards, check out the complete Snowflake analysis. Alternatively, you can check out the community page for Snowflake to see how other investors believe this latest news will impact the company's narrative.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SNOW.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Stock Market Today: The Dow Jones index rose Thursday despite Trump's new threats on Iran. Oracle stock plunged on earnings.

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Stock Market Today: The Dow Jones index rose Thursday despite Trump's new threats on Iran. Oracle stock plunged on earnings.

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Quick Read

Snowflake surged 58% in a month after delivering 34% year-over-year product revenue growth, yet trades at half Palantir's free-cash-flow multiple. Palantir's trailing P/E of 150 and 27% year-to-date decline reflect what happens when AI narrative valuations collide with higher-for-longer capital costs. Snowflake's $9.21 billion remaining performance obligations, up 38%, plus a $6 billion AWS deal provide multi-year revenue visibility Palantir's model cannot match. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Snowflake didn't make the cut. Grab the names FREE today.

Palantir (NASDAQ:PLTR) is the ticker every retail trader keeps tweeting about, riding an AI government-software narrative into one of the richest valuations in large-cap software. But here's what you should actually be watching: the unloved data platform that just printed its strongest sequential growth quarter in company history while the headline name was busy cracking.24/7 Wall St.

Start with the math nobody on wallstreetbets wants to do. Palantir trades at a trailing P/E of 150 and a price-to-sales ratio of 61, with a forward multiple still near 90. Free cash flow yield sits at 0.70%. Those are lottery-ticket numbers, and the lottery is already cashing out. The stock is down 26.75% year to date and 8.43% in the past week alone, trading at $130.21 against a 52-week high of $207.52.

The narrative is cracking in public. Reddit's r/stocks lit up on June 3 around Michael Burry's "A Sand Castle Supported Only By AI Applications Narrative" critique, and bearish posts have outnumbered bullish ones 18 to 8 over the past 30 days. Next-big-thing bubbles deflate when capital costs stay higher for longer, and this is what that deflation looks like in real time.

The Redirect: A Database Monopoly On Sale

Snowflake (NYSE:SNOW) is the boring infrastructure play under the AI froth, and it just delivered the kind of quarter that retirement-focused capital should care about. Three points settle the argument.

1. The valuation gap is absurd. Snowflake trades at roughly 74x price-to-free-cash-flow against Palantir's 142x. Free cash flow yield runs at 1.35%, nearly double Palantir's. The market cap sits near $83 billion, less than a third of Palantir's $299 billion, despite operating the layer of the stack every AI agent ultimately queries.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Snowflake didn't make the cut. Grab the names FREE today.

2. Fundamentals are accelerating. Q1 FY2027, reported May 27, 2026, delivered product revenue of $1.33 billion, up 34% year over year, the strongest sequential dollar growth in company history. Non-GAAP EPS of $0.39 beat estimates by 21.95%, the fourth straight beat. Remaining performance obligations reached $9.21 billion, up 38% year over year, providing the kind of multi-year revenue visibility Palantir's consumption model cannot match. Net revenue retention held at 126%. Full-year product revenue guidance was raised to $5.84 billion, and operating margin guidance moved up to 13.5%.

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3. The moat is widening while the crowd looks elsewhere. Snowflake just signed a $6 billion multi-year agreement with AWS, deepened its OpenAI co-innovation, brought SAP integration to general availability, and acquired Natoma for Model Context Protocol agents. CEO Sridhar Ramaswamy framed it plainly: "Q1 marks a clear inflection point... positioning Snowflake to lead in this new era." Over 13,600 accounts are already on Snowflake AI.

Reddit activity on Snowflake remains a fraction of Palantir's, which is exactly the point. The stock is up 58.35% in the past month from $151.50 to $239.90, and the crowd is still busy arguing about a sand castle.

For a retirement-focused investor, Snowflake looks worth researching while the sticker is still on.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Snowflake didn't make the cut. Grab the names FREE today.

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SpaceX's (NASDAQ: SPCX) long-awaited initial public offering (IPO) has ignited investor excitement unlike anything seen in years. Last week, news broke that the company set a fixed offering price of $135 per share. For an everyday investor armed with some capital, this price tag appears accessible -- opening the door to a stake in Elon Musk's space exploration and AI empire.

Smart investors understand that IPO stocks come with far more sobering realities, however. Let's explore the harsh mechanics of IPO stocks before retail investors pile into SpaceX's upcoming offering.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Image source: Getty Images.

How much does a $10,000 investment buy in the SpaceX IPO?

Let's start with the cold math. A $10,000 initial investment at the $135 offering price will buy you roughly 74 shares. Here's the catch: IPO shares are not allocated on a first-come, first-served basis.

Brokerage firms receive a limited pool of shares from the IPO underwriters. This means that retail investors are competing against demand from institutional companies and high-net-worth clients. In other words, a $10,000 deposit doesn't guarantee 74 shares. While SpaceX's offering price is fixed, your actual execution price boils down to how brokerages rotate their allotments.

What brokerage firms have access to the SpaceX IPO?

Participating in an IPO requires having an account with one of the major brokerages that have secured access to the SpaceX offering. These platforms include Charles Schwab, Fidelity, Robinhood Markets, and SoFi Technologies.

These platforms offer online applications that take just a few minutes to complete. For the SpaceX IPO in particular, account minimums are zero for Robinhood and SoFi. Charles Schwab requires investors to have a minimum balance of $100,000, while Fidelity lowered its threshold to just $2,000.

Eligibility for IPO investing can be stricter than simply having available cash. Brokerages generally check your account tenure and trading history, and they may assess your total assets (or available liquidity).

Are IPOs smart opportunities for retail investors?

The overwhelming likelihood for a $10,000 order is a partial fill or, more commonly, no fill at all. When SpaceX stock actually lists on the Nasdaq on Friday, the shares that retail investors missed at the $135 offering price will trade in the open market.

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Stock market history is filled with examples of newly public high-profile companies that pop on the first day of trading, fueled by pent-up demand. These dynamics were on full display during the Cerebras Systems IPO, and in offerings from Figma, Snowflake, and Palantir Technologies in recent years.Data by YCharts.

Suddenly, the offering price climbs much higher in an otherwise short window. More often than not, chasing the premium after missing the offering price turns disciplined investments into emotional gambles. Moreover, if the stock later corrects -- which is common for hot IPOs -- investors who paid frothy prices end up holding the bag.

At the end of the day, a $10,000 investment in the SpaceX IPO will likely deliver far less ownership and far more frustration than headlines currently suggest. While straightforward math promises 74 shares at a $135 cost basis, the underlying process comes with a high degree of uncertainty and slim odds of an allocation. For most retail investors, the more prudent path to investing in SpaceX is to watch from the sidelines rather than following the crowd for now.

Should you buy stock in Space Exploration Technologies right now?

Before you buy stock in Space Exploration Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,038! Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,277,804!

Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of June 10, 2026.

Charles Schwab is an advertising partner of Motley Fool Money. Adam Spatacco has positions in Palantir Technologies and SoFi Technologies. The Motley Fool has positions in and recommends Figma, Palantir Technologies, and Snowflake. The Motley Fool recommends Charles Schwab and recommends the following options: short June 2026 $97.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.

Here's How Much a $10,000 Investment Could Get You When SpaceX Goes Public on June 12 was originally published by The Motley Fool

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The buzz around SpaceX's (NASDAQ: SPCX) upcoming initial public offering (IPO) this week has reached a fever pitch. With Elon Musk's rocket empire poised to list on the Nasdaq on June 12, retail and institutional investors alike are salivating at the opportunity to own a piece of the company behind Starlink, reusable rockets, and an ambitious sovereign AI roadmap.

The question smart investors are asking is whether scooping up shares on the first day of trading is a smart move, or a costly thrill ride. Spoiler alert: History suggests the latter. While the SpaceX IPO will undoubtedly be a spectacle, buying shares at the opening bell will almost certainly mean overpaying for hype that will fade fast. Read on to learn why.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »Image source: Getty Images.

What are the terms of the SpaceX IPO?

SpaceX is likely going to execute the largest IPO in history. The company is offering roughly 555.6 million shares at a fixed price of $135 each. At these terms, SpaceX would raise $75 billion and value the company at around $1.8 trillion.

SpaceX's revenue for 2025 grew 33% year over year to $18.7 billion; however, the company's bottom line shifted from a modest profit in 2024 to nearly a $5 billion loss last year. Such a change underscores the capital-intensive nature of the company's launch business, satellite constellation, and emerging AI compute buildouts.

According to several news outlets, IPO share orders for SpaceX are reportedly hovering around $250 billion -- nearly triple the amount the company hopes to raise from the offering. In my eyes, a heavily oversubscribed setup like this could easily inspire feelings of scarcity, FOMO, and speculation -- driving opening day prices far beyond fundamentals.Image source: The Motley Fool.

Analyzing case studies of recent tech IPOs

A number of high-profile tech IPOs in recent years reveal a consistent pattern: Explosive opening gains fueled by hype, followed by harsh selling shortly thereafter.

In September 2020, Palantir Technologies(NASDAQ: PLTR) debuted via direct listing. Shares opened at $10, spiked as high as $11.42 in early trading, and then closed the day at $9.50 -- slightly below its first trade.

Famous investment personalities like Cathie Wood made several rounds on CNBC and similar programming, pumping Palantir's data analytics platform after the company's IPO. This commentary helped propel the stock into the $40 range toward the end of 2020 and early months of 2021.

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However, Wood eventually dumped her fund's stake in Palantir following a couple of mundane earnings reports from the company. Palantir stock essentially traded sideways between $6 and $8 for almost two years before the AI boom gave it a second wind.

Snowflake's (NYSE: SNOW) 2020 debut was even more dramatic than Palantir's. Priced at $120 per share, the cloud data platform soared to $254 on its first day of trading -- a 112% gain. Eventually, investors realized that Snowflake's business wasn't particularly unique amid a packed competitive landscape. Investor expectations grew, but the company's modest earnings results sent the stock tumbling in a downward spiral for years.

More recent examples echo this same theme. Figma(NYSE: FIG), the collaborative design platform, priced at $33 last July and closed its first day at $115 -- a staggering 250% surge. Cerebras Systems(NASDAQ: CBRS) priced at $185 last month, but opened between $350 and $385. Over the last couple of weeks, Cerebras stock has slid materially from its opening-day price.PLTR data by YCharts

As the graph above illustrates, Snowflake has not again reached its all-time high of $401 from late 2021. Similarly, Figma stock has not recovered from its IPO surge and now trades well below its opening-day price.

The realities of post-IPO investing

Here's the trillion-dollar question: What happens after the confetti settles on Friday? The easy thing to point out is that SpaceX -- like many of the companies explored above -- boasts a premium valuation, which comes with enormous investor expectations.

Investors who buy SpaceX stock on Day 1 risk holding their shares through years of volatility until a genuine business catalyst emerges. The post-pop gravity seen across Palantir, Snowflake, Figma, and now Cerebras almost makes a post-IPO sell-off inevitable.

Moreover, smart investors are also considering lock-up expirations. Once these agreements expire, employees, insiders, and early investors can (and probably will) unleash waves of profit-taking. This selling brings downward pressure on the stock, sending shares cratering and leaving investors who bought the IPO holding the bag.

To me, exercising patience is the wiser strategy when it comes to investing in the SpaceX IPO. Wait for the dust to settle and business fundamentals to reassert themselves rather than chasing momentum on the opening day. In the end, buying SpaceX stock at the IPO will almost certainly require paying an unsustainable premium.

Should you buy stock in Space Exploration Technologies right now?

Before you buy stock in Space Exploration Technologies, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Space Exploration Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,038! Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,277,804!

Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of June 10, 2026.

Adam Spatacco has positions in Palantir Technologies. The Motley Fool has positions in and recommends Figma, Palantir Technologies, and Snowflake. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.

Should You Buy SpaceX Stock on Day 1? was originally published by The Motley Fool

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Snowflake stock was among a "Fab Five" of infrastructure software stocks BofA analysts expect can build on recent rallies.

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Die Firma Snowflake (SNOW) möchte Wall Street überzeugen, dass ihr nächster Schritt größer ist als der Cloud-Datenspeicherung. Bank of America scheint dem Pitch zu glauben. BofA Securities hat sich nach dem Investor-Day nochmals für Snowflake ausgesprochen und ein Kaufempfehlung mit einem Preisziel von 300 US-Dollar gegeben, was etwa 22,5% mehr als der aktuellen Kurs von 244,82 US-Dollar entspricht. Die Firma möchte nicht nur als High-Growth-Software-Firmen wahrgenommen werden, sondern als eine der primären Plattformen für die Organisation, Regulierung und Aktivierung von Daten für AI-Agenten. Snowflakes CEO Sridhar Ramaswamy hat betont, dass die Firma sich von einem einfachen Datenspeicher zu einer Kontrollschicht für Unternehmen entwickeln möchte.

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Nu Holdings Ltd. (NYSE:NU) ist eine der besten NYSE-Aktien zum Kauf für langfristige Anlage. Die Firma wurde von Susquehanna auf Neutral herabgestuft, mit einem neuen Preisziel von $13. Der Grund dafür sind die sinkenden Betriebsmargen aufgrund des Kreditkartenbooms in Brasilien und der Expansion nach Mexiko. BofA hat Nu Holdings Ltd. (NYSE:NU) ebenfalls auf Underperform herabgestuft.