• Snowflake (SNOW) stock has fallen prey to this year’s vicious tech wreck.
• The correction looks overdone, as Snowflake collaborates with notable business partners to deliver outstanding products.
• Prospective SNOW stock investors should prepare for a swift turnaround with a buy-low, sell-high strategy.

Source: Sundry Photography / Shutterstock

Montana-headquartered Snowflake (NYSE:SNOW) is known as a cloud-based infrastructure company that offers solutions for data warehousing, sharing and more. Despite the downward trajectory of SNOW stock, investors ought to look at the company’s intrinsic value and think about taking a long position.

It’s funny how the investing community can be fickle sometimes. In 2020 and 2021, cloud stocks were all the rage. Lately, though, some of the brightest names in the cloud have been ignored or even despised on Wall Street.

Snowflake, which has been favored by legendary investor Warren Buffett, is generally out of favor now. Perhaps SNOW stock has just been collateral damage as traders rotate out of growth stocks and, more specifically, technology stocks.

It’s possible people are panic-selling even while Snowflake establishes partnerships with multiple tech innovators. In that context, the best policy is to buy when others are fearful, and pick your price target to take profits someday.

What’s Happening with SNOW Stock?

Speaking of price targets, SNOW stock has gone as high as $405 during the past 12 months. The stock was trading closer to $150 recently, so cautious investors can take profits at $250 while more aggressive traders could set their sights on $400.

Of course, there’s no guarantee the Snowflake share price will reach any of those figures. However, the cloud is here to stay, and the company is prepared to capitalize on (per its own estimate) a cloud data platform market opportunity valued at roughly $90 billion.

Besides, this is a right-time, right-market company — Snowflake has demonstrated 106% year-over-year revenue growth from fiscal-year 2021 to 2022. How is the company preparing for the future of the cloud, though?

Working with Industry Leaders

The answer to that question is collaboration with pioneering companies to add value for all stakeholders. Three recently announced partnerships immediately come to mind:

• Snowflake is working with data storage technology and services specialist Pure Storage (NYSE:PSTG) to “develop a solution that increases data accessibility for global customers with on-premises data.”
• Also, Snowflake and Stripe have enabled joint customers to access and use their Stripe payment data directly in Snowflake.
• Moreover, Snowflake has extended its business relationship with Amazon’s (NASDAQ:AMZN) Amazon Web Services (AWS). In a recent development, customers will be able to receive Amazon purchase order data and “leverage product demand forecast data generated by Amazon Forecast within Snowflake’s Retail Data Cloud.”

In light of these exciting partnerships, it’s baffling and frustrating to witness Wall Street dumping SNOW stock. But then, irrational sentiment can lead to prime opportunities, such the chance to buy Snowflake shares at the current price.

What You Can Do Now With SNOW Stock

To put it simply, Snowflake is a premier tech company that’s working closely with other premier tech companies. If you can envision market growth for the cloud, then Snowflake should be on your radar as an investor.

Just know the SNOW stock price probably won’t stay where it is for much longer. Whether you’re targeting $250, $400 or more, you’re invited to stay in the trade for the long term. Hopefully, the Snowflake share price will be back up in the clouds in due time.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.