tl;dr
In late-day trading on Wednesday, Snowflake (NYSE:SNOW) shares fell 23% as the company forecast a considerable slowdown in fiscal 2025 revenue and announced a management shakeup. Looking to fiscal 2025, product revenue is expected to rise 22% year-over-year to roughly $3.25B, well below the 38% incr...
In late-day trading on Wednesday, Snowflake (NYSE:SNOW) shares fell 23% as the company forecast a considerable slowdown in fiscal 2025 revenue and announced a management shakeup. Looking to fiscal 2025, product revenue is expected to rise 22% year-over-year to roughly $3.25B, well below the 38% increase seen in fiscal 2024. For the first quarter, Snowflake expects product revenue to be between $745M and $750M, up between 26% and 27% year-over-year. Adjusted operating margins are forecast to be around 3%, while adjusted operating margins for the full year are expected to decline 200 basis points to 6%. Other cloud stocks, such as Amazon (AMZN), Datadog (DDOG), and Google (GOOG) (GOOGL) were lower following the weak guidance. The slowdown in expected sales comes after Snowflake announced fourth-quarter results that topped expectations. Revenue for the period rose 32% year-over-year to $774.6M, above the $760.4M estimate, and product revenue rose 33% year-over-year to $738.1M, above the $723.3M estimate. The company earned $0.35 per share on an adjusted basis, $0.17 better than analysts had expected. Remaining performance obligations during the period rose 41% year-over-year to $5.2B, while net revenue retention clocked in at 131%. Additionally, Snowflake announced that Chief Executive Frank Slootman is retiring and will be replaced by Sridhar Ramaswamy, effectively immediately. Ramaswamy will join the company's board of directors, while Slootman will stay on as Snowflake's chairman. The company will host a conference call at 5 p.m. EST to discuss the results.
More about Snowflake Inc.
Snowflake Inc. provides a cloud-based data platform in the United States and internationally. The company's market capitalization stands at $76.83 billion. The stock has shown a 8.05% increase over the past year, currently trading at $230.15. Despite recent volatility, the company has shown resilience with a relative strength index (RSI) of 0.318. The stock's performance indicates potential bullish sentiment, supported by a strong support level at $230. However, caution is warranted as the company has experienced a negative earnings per share of -2.68 and a decrease in revenue growth by -0.334. Additionally, the stock price is currently below its 50-day and 200-day moving averages, suggesting a potential bearish trend. Investors should be mindful of these factors and closely monitor the stock's performance before making any investment decisions.
More about Amazon.com Inc
Amazon.com, Inc. is a leading multinational technology company in the retail-catalog and mail-order industry with a market cap of $1.81 trillion. The stock has a current price of $3,499.12 and a 52-week range of $2,880.00 - $3,773.08. The company's stock performance has been bullish, with a 2.9% increase in the last month and a Relative Strength Index (RSI) of 55.78, indicating a potential upward trend. However, the stock is currently trading above its 50-day moving average of $3,337.23, which could indicate overbought conditions. Market sentiment towards Amazon.com Inc. remains positive, with the company being recognized as one of the most influential economic and cultural forces in the world. However, investors should be cautious of potential risks and uncertainties associated with the stock's high valuation and the overall market conditions.
More about Datadog Inc
Datadog Inc. is a technology company providing an analytics and monitoring platform for developers, IT operations teams, and business users in the cloud. As of the most recent data, the company's market capitalization stands at $42.93 billion, with a stock price of $923.93 per share. The stock has shown a minimal change of 0.14, with a 6.57% increase in the Relative Strength Index (RSI) and a Bollinger Bands indicator of 0.0228. The company has a trading volume of 2,128,359,000 shares and a stock price of $147.76. Market sentiment towards Datadog Inc. appears neutral, with no clear indication of a bullish or bearish trend. However, caution should be exercised as past market behavior is not always a reliable indicator of future performance.
More about Alphabet Inc Class C
Alphabet Inc. Class C is a major player in the technology sector, with a market value of $1.717 trillion. The stock has shown a 0.56% increase in performance, closing at $162.02. The company's market sentiment appears to be bullish, with a current price-to-earnings ratio of 23.92 and a positive Relative Strength Index (RSI) of 24.34. However, there is a potential risk of volatility, as indicated by the Bollinger Bands. It's important to note that past performance is not always indicative of future results, and investors should carefully consider these factors before making any financial decisions.
More about Alphabet Inc Class A
Alphabet Inc. Class A is a technology company with a market cap of $1.717 trillion, making it one of the world's most valuable companies. The stock has a current price-to-earnings ratio of 23.68 and a dividend yield of 0.24%. The stock has shown a 5.81% return over the past year and is currently trading at $162.06. Market sentiment is bullish, with the stock showing a positive trend and breaking through resistance levels. However, there are potential risks associated with the stock's performance, and past behavior may not be indicative of future results.
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