Snowflake (NYSE: SNOW) stock hasn't set the market on fire in 2023 so far. Shares of the cloud-based data platform provider have remained flat this year, which pales in comparison to the 15% gains logged by the Nasdaq Composite index.
Snowflake's tepid performance may seem a tad surprising at first, given that the company reported terrific growth when it released its fiscal 2023 results earlier this year. However, management's cautious tone about the company's near-term performance amid a pullback in customer spending has weighed on the stock. But is Snowflake's underperformance on account of a near-term slowdown an opportunity for savvy investors to buy it? Let's find out.
Snowflake's guidance for the first quarter of fiscal 2024, which ended on April 30, 2023, points toward a significant slowdown from the 70% growth in revenue to $1.9 billion that the company reported last fiscal year. Snowflake management expects fiscal Q1 revenue to increase 44.5% to $570 million at the midpoint of its guidance range. The full-year revenue is expected to jump 40% to $2.7 billion.
Source Fool.com