Shares of Snowflake Inc. (NYSE:SNOW) plummeted 5.57% during Monday's trading session, as investors reacted to a significant price target reduction from a major analyst firm. The cloud-based data platform provider saw its stock price fall sharply following the release of a bearish research note.

DA Davidson, a prominent financial services firm, lowered its price target on Snowflake from $225 to $200, while maintaining a "Buy" rating on the stock. The downward revision came as part of a broader research note addressing concerns about potential economic slowdown in the United States. Despite keeping a positive long-term outlook on the company, the firm's analysts expect near-term headwinds to impact Snowflake's growth trajectory.

The price target cut reflects growing worries about the overall economic landscape. DA Davidson's research note suggests a base case scenario of one or two quarters of negative GDP growth in the US, which could lead to reduced corporate investment and slower consumer activity. This outlook has already begun to affect valuations across the tech sector, with Snowflake being no exception. As companies potentially tighten their budgets in response to economic uncertainty, it could impact demand for Snowflake's cloud-based data services, at least in the short term.