Here's Why Snowflake Stock Sank Like a Rock Today
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. As of 9:50 a.m. ET, Snowflake stock was down 16% and falling.
In Q1, which ended in April, Snowflake generated product revenue of $590 million, up 50% year over year. This beat Wall Street's expectations and was ahead of management's own guidance as well.
However, Snowflake's management noticed slowing growth after Easter, which led to a slower-than-expected April. And on the conference call to discuss Q1 results, CFO Mike Scarpelli said, "It is challenging to identify a single cause of the consumption slowdown between Easter and today." This almost sounds like management isn't quite sure why business is slowing down, which did little to reassure the market today.
Source Fool.com
