|Day's Range||75.30 - 75.30|
Investors are trying to weigh the company's rapid growth with the fact that those high growth rates are quickly decelerating. Here's a closer look at Snowflake's business, its growth, and why investors may want to tread carefully when it comes to the company's highly valued stock. In short, there are two big concerns that Snowflake investors should take seriously: the degree to which Snowflake's growth rate is decelerating and management's recent move to significantly lower its full-year revenue guidance.
Snowflake Inc. (SNOW) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Fool.com contributor and finance professor Parkev Tatevosian elaborates on how Amazon (NASDAQ: AMZN) and Snowflake (NYSE: SNOW) have prospects that are correlated. *Stock prices used were the afternoon prices of May 29, 2023.
After reaching hilariously high valuation levels of 180 times sales, the stock price abruptly came down and now sits around $150, well below its debut price of about $245. Furthermore, storing this information is also easier, as a massive data center can hold more information than a personal computer.
Snowflake (NYSE: SNOW) and Cloudflare (NYSE: NET) are both hypergrowth tech stocks that reached their all-time highs in November 2021. The bulls retreated from both hot stocks as their growth cooled off, the macro headwinds intensified, and rising interest rates popped their bubbly valuations. Snowflake and Cloudflare both provide cloud-based services, but they serve completely different markets.
Fool.com contributor and finance professor Parkev Tatevosian evaluates Snowflake's (NYSE: SNOW) prospects over the next year. *Stock prices used were the afternoon prices of May 29, 2023. The video was published on May 31, 2023.
The cloud specialist is down following weak guidance, but investors shouldn't discount its long-term prospects.
The company reshapes the way businesses use data and develop applications, and it's currently breaking new ground in the artificial intelligence (AI) arena. Snowflake stock went public in 2020 with an impressive list of investors, including Berkshire Hathaway, the conglomerate run by Warren Buffett. Investors seem to be concerned about slowing revenue growth, which could get worse given management just reduced its guidance for the full fiscal 2024 year (ending Jan. 31, 2024).
Well, Snowflake's management just lowered its revenue growth guidance and expects the company to grow at its slowest pace ever. However, management's guidance also implies about 28% to 29% year-over-year revenue growth in just the second half of fiscal 2024.
Berkshire Hathaway CEO Warren Buffett might not be the first name you think of when it comes to cutting edge artificial-intelligence (AI) investments. If you're interested in owning AI stocks that have the Berkshire Hathaway seal of approval, read on to see why two Motley Fool contributors believe investing in Snowflake (NYSE: SNOW) and Apple (NASDAQ: AAPL) would be smart moves. Keith Noonan: Snowflake is a provider of big-data analytics tools that have been built from the ground up to power the evolution of machine-learning and AI applications.
Hence, investors may want to treat it as an opportunity to add shares in the software-as-a service (SaaS) stock. However, Snowflake's data cloud is arguably best suited for storing and applying data, and with the rising dependence on AI, this SaaS product has become more critical.
Snowflake's (NYSE: SNOW) stock plunged 17% on May 25 after the cloud-based data warehousing company posted its latest earnings report. For the first quarter of fiscal 2024, which ended on April 30, its revenue rose 48% year over year to $624 million and exceeded analysts' expectations by $15 million.
Snowflake (NYSE: SNOW) downgraded estimates of revenue and profit for the rest of the year as clients tightened budgets. Fool.com contributor and finance professor Parkev Tatevosian discusses whether that's a buying opportunity for Snowflake stock investors.
The data cloud provider reported a 50% year-over-year increase in revenue for the first quarter of fiscal 2024, which shows a significant slowing in the company's top-line growth. Snowflake's revenue growth is continuing to decelerate as companies tighten their spending on cloud services, and management expects these trends to continue through 2023. Management was upfront on the earnings call, explaining that the near-term demand for the data cloud platform is weakening.
The data warehousing specialist had long been among the fastest growers in cloud computing, but its first-quarter earnings report shows that it can't escape the broader challenges in the sector. Snowflake offered disappointing guidance in its first-quarter earnings report, sending the stock down 17% on the news as the company forecast a significant decline in revenue growth over the remainder of the year. Product revenue in the first quarter grew 50% to $590.1 million, and overall revenue rose 48% to $623.6 million, which topped estimates at $608.4 million.
Dispiriting guidance and bearish analyst changes pushed the company's share price down over the past few trading days.
Growth is slowing. But that doesn't mean the data cloud specialist's growth rates aren't still high.
Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades for Snowflake, MongoDB , Digital Turbine, and Annexon. Snowflake (NYSE:SNOW) was downgraded at two Wall Street firms after reporting its Q1 earnings, resulting in a share price drop of more than 16% yesterday, as InvestingPro reported in real-time. While Q1 results came in better than expected, the company’s outlook disappointed investors.
(Bloomberg) -- Snowflake Inc.’s stock had its worst day ever after the company gave a quarterly sales outlook that fell short of expectations, suggesting that customers have continued trimming their spending for cloud software amid uncertain economic conditions. Most Read from BloombergChina Is Drilling a 10,000-Meter-Deep Hole Into the EarthInside the Making of Redfall, Xbox’s Latest MisfireDebt-Limit Deal Passes the House, Easing US Default ConcernsWall Street Banks Are Using AI to Rewire the
Snowflake (NYSE: SNOW) dropped over 15% after its recent earnings report, and the stock is down over 60% from its all-time highs and over 38% since its first day of trading after its IPO in September of 2020.
Snowflake's (SNOW) first-quarter fiscal 2024 results reflect growth in product revenues and customer-base expansion amid higher expenses.
The company also took this opportunity to go all-in on artificial intelligence (AI). In a digital nutshell, Snowflake is doing business as usual despite a challenging economy, and the company is making a sharp turn into an explosive AI opportunity. As usual (more on the repeatable trend in a moment), Snowflake delivered financial results above the top end of management's guidance.
Shares of cloud-based data software company Snowflake (NYSE: SNOW) sank on Thursday after the company announced financial results for the fiscal first quarter of 2024 and lowered its forward guidance. In Q1, which ended in April, Snowflake generated product revenue of $590 million, up 50% year over year. In light of April's slowdown, Snowflake's management lowered its full-year revenue guidance.
The Yahoo Finance Live team reports on the decline of Snowflake shares on cloud demand warnings and the company's full-year outlook amid the economic slowdown.
Q1 2024 Snowflake Inc. Earnings Call