Snowflake's stock price plummeted 5.05% during intraday trading on Friday, as investors reacted to concerns about the company's profitability metrics for its newer business segments.

According to an analyst note from Oppenheimer, Snowflake's contribution margins from its Cortex Code and artificial intelligence workloads are lower than those from its core analytics and engineering workloads. While the brokerage maintained an outperform rating and suggested the trade-off could be positive due to higher revenue, the immediate focus on margin pressure appears to have weighed on investor sentiment.

Oppenheimer noted that Snowflake recently previewed a new autonomous AI platform called SnowWork as part of its efforts to meet shifting customer expectations. The analyst firm indicated that much of the margin pressures could be offset over time through scale and efficiency gains, but the near-term impact contributed to the stock's downward movement.