Other reports on Thursday offered a nuanced picture. Snowflake published disclosures yesterday showing that company leadership had sold and donated stock. Analysts question Snowflakes slowing growth? AstraZeneca bounced back after mixed results from a cancer drug trial sparked a selloff Monday. The PBOC sets a daily reference point, from which the yuan can move within a certain range. The software services provider published disclosures yesterday with the Securities and Exchange Commission (SEC) that a top executive and board member had donated and sold shares. Even after today's gains, Snowflake's shares can be had for less than 20% above their $120 IPO price -- and more than 60% below their highs back in November. The driving factors behind Snowflake's outsized stock decline appear to be insider selling and charitable share donations. Shares ofSnowflake(SNOW -0.92%) declined by 10.4% on Thursday, giving back some of the cloud-based data management company's first-day gains. Snow can drop another 70% and would be still overvalued. Hopes for a potential cut to interest rates by early next year diminished. Meta ended the day down 0.8%. In addition, tech stocks continued their down trend, as interest rates continued to rise as investors consider the . A jobs report Friday will likely have a much bigger impact on Wall Street than anything else this week. Keith Noonan has no position in any of the stocks mentioned. Snowflake made a filing with the SEC revealing that the company Co-founder and President of Products Benoit Dageville had donated 37,090 shares to a charitable entity. In addition to being the largest sphere, the bowl reportedly also has the largest LED . Reback kept the firm's hold rating on Snowflake (SNOW) shares and lowered his per-share price target to $120 from $240, a 50% cut. IPO stocks tend to be highly volatile, and Snowflake is proving to be no different. The second-quarter product revenue growth would be the lowest since Snowflake became a public company, Bloomberg reported. The dollar slipped to 143.74 Japanese yen from 144.06 yen. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. The euro rose to $1.0895 from $1.0890. This copy is for your personal, non-commercial use only. It's thought that many planetary bodies in our solar system contain liquid water deep below their icy surfaces. One software benchmark the iShares Expanded Tech-Software exchange-traded fund ( IGV) is up 33% to date this year. The U.S. The FactSet consensus for the year was $2.826 billion, after Snowflake executives gave an initial full-year product-revenue forecast for 47% growth on its prior earnings call in late November. Is this happening to you frequently? Shares eventually closed at $253.93, or more than twice their offering price. Weview the increase in FY24 [free-cash-flow] guidance from23% to25% as a positiveand the $2 billion buyback helps reinforce the companys positive long-term view.. The Shanghai Composite index lost 0.4% to 3,194.19, while Australias S&P/ASX 200 sank 1.6% to 7,049.30. It also said the current economic environment is. Snowflake is up 13.1% since the beginning of the year, but at $153.60 per share it is still trading 22.4% below its 52-week high of $197.98 from September 2022. Deutsche Bank's call was made as one part of a wide-ranging series of reductions in software stocks' price targets (but no actual downgrades). The company had a 158% net revenue retention rate in the quarter. The previous big move was about two months ago, when the company dropped 6.64% on the news that the ADP payrolls report showed that the private sector added 145k jobs in March, much lower than analysts' expectations for 210k. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. The Motley Fool has positions in and recommends Snowflake. Snowflake (SNOW) shares fell nearly 4% to $127.53 in late trading, though they were off the lows of the session. In addition, both next quarter and full year guidance for product revenue and operating income margin missed expectations--this is the major driver of the stock move down. That being said, the bank believes it's time for investors to adopt "a healthy respect for the market and macro backdrop.". Here's How Big Joe Biden's Social Security Check Is -- To the Dollar, 3 Changes to Social Security You Probably Didn't Know, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. Want $10,000 in Annual Dividend Income? "[W]e note the marginal revenue beat fell short of expectations as management highlighted some customers are consuming less than originally anticipated amidst a more challenging operating environment and shifting economic landscape," Reback wrote in a note to clients, adding companies are now moving to "optimize" their cloud spending as a result of slowing businesses. Why Snowflake Stock Is Sinking Today | The Motley Fool Major stock indexes finished Wednesday lower after data showed Chinas services sector expanded slower than expected and the Fed released minutes from its June meeting. fell 13.4% in the after-market session after the company reported first-quarter revenue, product revenue, and earnings per share (EPS) that surpassed analysts' expectations. After China lifted its pandemic-era restrictions, observers had high hopes for a robust rebound to take hold. On Tuesday, Rosenblatt analyst Blair Abernethy raised his rating on Snowflake's (SNOW) stock and said the shares could see strong gains this year. Yields jumped in the bond market as traders ramped up bets for the Fed to keep rates higher for longer than previously expected. Snowflake Inc. (SNOW) Latest Stock News & Headlines - Yahoo Finance If currency devaluation continues to run hot, the Federal Reserve could serve up another round of interest-rate hikes. Emily Bary is a MarketWatch reporter based in New York. So the prices investors are willing to pay to own unprofitable tech stocks such as Snowflake may come down. Snowflake's stock fell to a low near $215 before closing the day at $227.54. Stifel analyst Brad Reback noted that while the first quarter "modestly exceeded expectations," calling out the more than 40% free cash flow margin, a challenging environment is resulting in lower usage. Benzinga does not provide investment advice. I will look at SNOW when price is lot lower. With a market value of more than $60 billion, its shares are currently trading at roughly 125 times its annualized sales. Senior British politicians are calling on the BBC to rapidly investigate claims that a leading presenter paid a teenager for explicit photos. Making the world smarter, happier, and richer. Stock Market News, July 5, 2023: Indexes End Lower; Meta Rises, Oil Climbs Snowflake and Nvidia Partner Up on AI, but There's a Lot More to This Story, Snowflake Partners With Nvidia and Microsoft for Huge Generative AI Move, 1 Reason to Buy Snowflake, and 1 Reason to Sell. Overall, it was a complicated quarter for Snowflake with a weak near-term outlook. Snowflake shares fell nearly 4% to $127.53 in late trading, though they were off the lows of the session. Indeed, analysts polled by S&P Global Market Intelligence don't see Snowflake reporting its first honest-to-goodness GAAP profit before 2027 at the earliest. In addition to Snowflake, the banker cut its valuations on about a dozen different tech stocks today, including names such as Palantir Technologies, Salesforce, and Oracle. But another report showed the number of U.S. workers applying for unemployment last week remains low relative to history, even if it was a bit higher than expected. American Airlines fell 2.4%. Compared to. Why Snowflake Stock Dropped Today By Jon Quast - Updated Mar 2, 2023 at 11:34AM Key Points Snowflake's growth during the past year was incredible and ahead of expectations. . *Average returns of all recommendations since inception. U.S. stocks edged downward. However, there are some understandable explanations for why Snowflake shareholders might be jumpy right now. On Wednesday, the central bank-backed publication Financial News ran a commentary that said the PBOC has sufficient methods for stabilizing currency markets even if the yuan crashes in a "panic.". Stock market today: Asian shares fall as strong US data dash hopes for an end to rate hikes. Newer customers are still consuming on Snowflake, but not ramping at the same pace as the companys early adopters, executives said. "The selloff is . My husband and I are 64. Invest $94,000 in These 5 High-Yield Stocks. JetBlue Airways sank 7.2% after it said it will end a partnership with American Airlines in the northeastern United States after losing a court fight over the deal. The Frank Slootman-led Snowflake (SNOW) said revenue from products rose 84% year-over-year to $394.4M. The change in existing customer purchasing behavior, lower-than-expected new logo bookings, and [a] slower expected ramp from our youngest cohorts has led us to reevaluate our FY 24 outlook, Chief Financial Officer Mike Scarpelli said on the earnings call, according to a FactSet transcript. On Thursday, the S&P 500 lost 0.8%, to 4,411.59. Snowflake's shares pulled back on Thursday. In particular, the market may be worried about new inflation data set to be released tomorrow. Though the first quarter saw growth spike to 4.5%, more recent data have pointed to sharp slowdowns in industrial production, retail sales, and investment. While a sturdy U.S. labor market keeps the economy out of a long-feared recession, it could also push the Federal Reserve to keep interest rates higher for longer in its campaign to defeat high inflation. Why Snowflake Stock Dropped Today | The Motley Fool The People's Bank of China has been ramping up its commentary on the yuan, which is falling against the dollar. Shares of Snowflake (SNOW -0.92%) slumped on Friday, closing down 4.2% for the day, after Deutsche Bank (DB 2.82%) cut its price target on the cloud-baseddata storage and analytics service from $400 to $375. (Ep.2) ASEAN is preparing for a generational change, positioning renewables and EVs for the energy transition, in this new series with Haslinda Amin. By clicking Sign up, you agree to receive marketing emails from Insider This triggered concerns of a potential recession amid continued comments from Fed officials that rate hikes are still needed to tame inflation. What happened. Snowflake (NYSE:SNOW) shares fell on Thursday as the data warehousing company reported first-quarter results that missed expectations, prompting some analysts to question the business model. Meanwhile, the PBOC's rhetoric contrasts with its actions on rates. The Motley Fool has a disclosure policy. To say Snowflake had a blockbuster initial public offering (IPO) would be a massive understatement. Hence, the lower price target for Snowflake today. Copper, which is heavily affected by Chinese demand, fell 0.7%. But the PBOC's cuts have widened the gap with US rates as the Federal Reserve continues to tighten with more hikes on the way, making dollar assets more attractive to investors. News of recent share sales and donations may look more concerning to investors in the face of the unfavorable macro backdrop for growth stocks. For fiscal 2022, the consensus was for growth of 66%. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite were all lower. As the growth trajectory of the U.S. economy improves, it becomes increasingly more challenging to envision what would cause the Fed to CUT rates anytime soon, as many market participants have been anticipating, Stephen Innes of SPI Asset Management said in a commentary. Snowflake's shares are very volatile and over the last year have had 53 moves greater than 5%. U.S. futures fell and oil prices were higher. The Dow Jones Industrial Average dropped 366 . Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. Distribution and use of this material are governed by As a reminder, higher rates have a negative impact on equity valuations, as future cash flows must be discounted back. has lost about 8%. -0.29% Analyst always find problems when stock is falling and it continues to fall as price goes down and analyst become more negative. Oil rose, with the U.S. crude benchmark up about 3%. The S&P 500 and Nasdaq 100 benchmarks notched losses on Thursday after ADP Research Institute numbers showed US companies added the most jobs in over a year in June, underscoring the ongoing strength of the labor market. Global stock market trading was light on Tuesday given the Independence Day . Traders are next to turning to Friday payroll numbers to gauge the Federal Reserves next move. Have a tip? -0.92% Find the latest Snowflake Inc. (SNOW) stock quote, history, news and other vital information to help you with your stock trading and investing. Hear the latest economic, business and market news, as well as global, national, and local news. Hate to see people lose money but the market has to get back to valueing companies correctly and its not done crushing the tik tok video investors yet, I questioned business model when it was 400. What to know about Las Vegas' MSG Sphere, the largest - USA TODAY Wall Street analysts expected the company to lose $0.51 a share on $413M in sales. Why Is Snowflake (SNOW) Stock Down 12% Today? - InvestorPlace The Dow Jones Industrial Average dropped 1.1% to 33,922.26 and the Nasdaq composite gave up 0.8% to 13,679.04. NEW YORK, NY - AUGUST 07: A 'now hiring' sign is viewed in the window of a fast food restaurant on August 7, 2012 in . Meanwhile, the Nasdaq Composite was down roughly 0.5%. Last week, the PBOC mouthpiece said the yuan will be stable through the second half of year and cautioned against currency speculation. For the quarter ended April 30, Snowflake (SNOW) lost $0.53 a share, on revenue of $422.4M, up 84.5% year-over-year. The Fed's June minutes noted that its rate-setting committee members continued to believe that "maintaining a restrictive stance for monetary policy would be appropriate to achieve the Committees objectives."