Snowflake’s Stock Crumbles as Databricks’ $100B AI Bet Pushes It to 128th in Market Volume

On August 19, 2025, Snowflake (SNOW) closed down 2.83% with a trading volume of $680 million, a 44.72% increase from the previous day’s activity, ranking it 128th in market volume among listed stocks. The decline follows developments in the competitive data analytics landscape.

Databricks, a key rival to Snowflake, is finalizing a new funding round that would value the company at $100 billion—a 60% jump from its $62 billion valuation in December 2024. The capital infusion aims to accelerate Databricks’ AI initiatives, including expansion of AI agents and investments in its database infrastructure. CEO Ali Ghodsi highlighted strong investor demand driven by the momentum of the company’s AI offerings, which serve large enterprises and AI services globally. Databricks also reported $3.7 billion in annualized revenue for July, reflecting a 50% year-over-year growth rate.

The competitive dynamics between Snowflake and Databricks are intensifying as both companies focus on enabling businesses to deploy proprietary data for AI agent development. While Snowflake’s technical ratings remain mixed—holding an IBD Composite Rating of 78/99 and an Accumulation/Distribution Rating of C-minus—the valuation surge for Databricks signals investor confidence in its AI-driven strategy. Analysts are monitoring how Snowflake’s upcoming August 27 earnings report might address these competitive pressures.

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