Snowflake: Worst Fears Were Confirmed

Summary:

  • Snowflake faces decelerating growth and cyberattack concerns, leading to a bearish outlook.
  • The company forecast a significant deceleration in key product revenue growth to only 20% in FQ4.
  • Despite promising future prospects with AI technology, the stock’s rich valuation at 12x forward sales suggests Snowflake still needs to trade lower.
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Snowflake Inc. (NYSE:SNOW) entered earnings in a precipitous place, facing decelerating growth after multiple cyberattacks hit confidence in the business. The AI data company confirmed the fears, sending the stock back to test the lows. My investment


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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