Why Snowflake Stock Is Sliding Thursday

Snowflake Inc SNOW shares are trading lower Thursday after the company reported third-quarter results.

What Happened: Snowflake said third-quarter revenue jumped 67% year-over-year to $557 million. The company's top-line results beat average analyst estimates of $539.1 million, according to Benzinga Pro. Product revenue totaled $522.8 million.

Snowflake reported third-quarter earnings of 11 cents per share, which beat average estimates of 4 cents per share.

Total customers grew to 7,292 during the quarter. 287 customers have trailing 12-month product revenue greater than $1 million.

Outlook: Snowflake expects fourth-quarter product revenue to be between $535 million and $540 million. The company expects full-year product revenue to be between $1.919 billion and $1.924 billion.

Analyst Assessment: Multiple analysts adjusted price targets on the stock following the company's quarterly results.

• Piper Sandler analyst Brent Bracelin maintained Snowflake with an Overweight and lowered the price target from $218 to $200.
• UBS analyst Karl Keirstead maintained Snowflake with a Neutral and lowered the price target from $175 to $140.
• Raymond James analyst Simon Leopold maintained Snowflake with an Outperform and lowered the price target from $197 to $180.
• Needham analyst Mike Cikos maintained Snowflake with a Buy and lowered the price target from $240 to $165.

See Also: What 11 Analyst Ratings Have To Say About Snowflake

SNOW Price Action: Snowflake shares are down 3.6% at $137.90 at time of publication, according to Benzinga Pro.

Photo: courtesy of Snowflake.