Snowflake (SNOW) stock plummeted 5.01% in the pre-market session on Tuesday, underperforming the broader market.

The decline could be attributed to concerns surrounding Snowflake's AI initiatives and the potential challenges posed by the open-table Iceberg format. While Snowflake has been investing heavily in AI-related products like the recently launched Sora video generation tool, analysts warn that the Iceberg format may reduce vendor lock-in, allowing customers to switch between Snowflake and competitors more easily.

Despite the concerns, analysts at Telsey Advisory have raised their price target on Snowflake, citing the company's potential as an AI beneficiary and its efforts to innovate in the AI space. However, the competitive landscape and the impact of the Iceberg format on Snowflake's market position remain uncertainties that could influence the stock's performance.