Why Snowflake Stock Is Falling Today

Snowflake Inc SNOW shares are trading lower Thursday after the company reported financial results and issued guidance below analyst estimates. 

Snowflake said fiscal first-quarter revenue increased 85% year-over-year to $422.37 million, which beat the estimate of $412.76 million, according to data from Benzinga Pro. The company reported a quarterly loss of 53 cents per share, which may not compare to estimates for earnings of 1 cent per share.

Snowflake said its customer base grew to 6,322 in the quarter, and 206 of those customers have trailing 12-month product revenue greater than $1 million.

Snowflake said it expects fiscal second-quarter revenue to be between $435 million and $440 million versus the estimate of $466.15 million. The company expects full-year 2023 revenue to be between $1.885 billion and $1.9 billion versus the $2.03 billion estimate. 

Analyst Assessment:

• Piper Sandler analyst Brent Bracelin maintained Snowflake with an Overweight rating and lowered the price target from $300 to $165.
• Barclays analyst Raimo Lenschow maintained Snowflake with an Overweight rating and lowered the price target from $218 to $158.
• Citigroup analyst Tyler Radke maintained Snowflake with a Buy rating and lowered the price target from $232 to $175.
• Stifel analyst Brad Reback maintained Snowflake with a Hold rating and lowered the price target from $240 to $120.
• Morgan Stanley analyst Keith Weiss maintained Snowflake with an Overweight rating and lowered the price target from $322 to $295.
• Evercore ISI Group analyst Kirk Materne maintained Snowflake with an Outperform rating and lowered the price target from $250 to $175.

See Also: 12 Consumer Discretionary Stocks Moving In Thursday's Pre-Market Session

SNOW Price Action: Snowflake shares are making new 52-week lows on Thursday.

The stock was down 9.58% at $120.05 at press time. 

Photo: courtesy of Snowflake.