By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Notification Show More
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > Investing > Snowflake stock catches another downgrade: ‘The growth outlook is very different’ now
Investing

Snowflake stock catches another downgrade: ‘The growth outlook is very different’ now

News Room
Last updated: 2023/05/26 at 2:06 PM
By News Room
Share
3 Min Read
SHARE

Snowflake Inc. lost another believer after its latest earnings report, as Wolfe Research analyst Alex Zukin moved to the sidelines on the shares.

Back when he initiated coverage of the stock in April 2022, Zukin thought the company had “the best management team in software, best product and best growth rate,” with the potential to expand revenue by about 50% in calendar 2024.

“While we still see all the above as possible, the current valuation does not leave much room for error, all while the macro has worsened, the competitive landscape has changed and the growth outlook is very different,” Zukin wrote as he downgraded the stock to peer perform from outperform.

The forecast has shifted dramatically, and Zukin has questions about whether Snowflake
SNOW,
+1.43%
will manage to grow revenue by even 30% next calendar year, after management at the data-warehousing company cut its fiscal 2024 forecast to an expectation of 34% product revenue growth from an initial target of 47% growth.

Don’t miss: Snowflake stock plummets as Wall Street wonders whether latest cut is indeed the last

“While the new guide appears beatable…it does not account for incremental deterioration of trends, which we believe is possible as May consumption was below plan, and we have yet to see bookings deteriorate from large enterprises in North America,” Zukin wrote.

What’s more, he worries about “growing competition with Databricks & Microsoft for workloads, mind share and dollars creates incremental execution headwinds.”

Zukin joins Rosenblatt Securities analyst Blair Abernathy, who downgraded Snowflake’s stock as well in the wake of the company’s latest earnings report and guidance disappointment.

“We expect Snowflake to continue to face a variety of growth headwinds for the balance of 2023 and, at this point, question how much the data-retention reduction issue will be fully recovered,” Abernathy wrote, as he moved to a neutral rating from his previous buy stance and cut his target price to $170 from $188.

Snowflake Chief Financial Officer Michael Scarpelli said on the company’s Wednesday afternoon earnings call that “a few of our largest customers have scrutinized Snowflake costs as they face headwinds in their own businesses,” and “some organizations have reevaluated their data-retention policies to delete stale and less valuable data.”

Shares of Snowflake sank 16.5% in Thursday’s session, though they’re still slightly positive on the year, up about 3%.

Read the full article here

News Room May 26, 2023 May 26, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
Deutsche Bank Aktiengesellschaft (DB) Q2 2025 Earnings Call Transcript

Deutsche Bank Aktiengesellschaft (NYSE:DB) Q2 2025 Earnings Conference Call July 24, 2025…

Asian automakers’ profits tumble after ‘unprecedented’ effects of US tariffs

Stay informed with free updatesSimply sign up to the Automobiles myFT Digest…

The polarising power of Andriy Yermak, Ukraine’s other wartime leader

On the biting morning of December 1 2023, just beyond the eastern…

Use buy now, pay later loans? They could soon impact your credit score

Watch full video on YouTube

How Airbus beat Boeing to become the world’s biggest plane maker

Watch full video on YouTube

- Advertisement -
Ad imageAd image

You Might Also Like

Investing

Why Home Builders Are Bouncing Today—and Why Their Stocks Are Good Buys

By News Room
Investing

This Beaten-Down Industrial Stock Wants to Call America Home. Why It’s Time to Buy.

By News Room
Investing

These 8 Dividend Aristocrats Can Protect Your Portfolio in a Downturn

By News Room
Investing

Some Lenders Benefit From SBA’s Troubled Loan Program

By News Room
Investing

Social Security Is in Turmoil. Should You Lock In Benefits Now?

By News Room
Investing

Hims & Hers Stock Is Due for a Crash Diet. The GLP-1 Surge Is Fading Fast.

By News Room
Investing

Opinion: The stock-market selloff isn’t over yet. Here are 4 reasons why.

By News Room
Investing

With Trump’s tariffs paused, ‘Big Three’ automakers may race to build inventories

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?