Snowflake drops on $3.5 bln 0% convertible debt sale plans

Snowflake

28/09/2026 12:44

** Shares of AI cloud firm Snowflake SNOW.N drop 5% to $319.21 in premarket trading on Mon as it seeks capital raise to retire some debt
** Menlo Park, California-based SNOW offering privately $1.3 bln 0% convertible bonds (CBs) due Oct 15, 2029 and $2.2 bln 0% CBs due Oct 15, 2031
** It intends to use net proceeds from offerings to repurchase a portion of its 0% CBs due 2027
** Also intends to use some proceeds for stock repurchases as well as acquisitions or investments, and to fund capped call transactions to offset potential dilution
** Co has ~$118.5 bln market cap
** Through Fri close, SNOW's stock up 53% YTD, including 10% gain since co on Sept 2 hiked its annual rev forecast on rising demand for its cloud data platform and AI products
** Avg rating of 51 analysts covering the stock is "buy"; median PT of $448.50 up from $322.50 a month ago, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))