Snowflake (NYSE: SNOW) stock jumped sharply higher following its latest earnings results for the fiscal 2024 third quarter (ended Oct. 31). Revenue growth was lower than the previous quarter, but investors see evidence of improving growth trends in the near term after Snowflake reported cloud consumption on its platform was up 500% in October since last year.
Let's look at the latest financial results, and whether investors should buy the stock now.
The declining rate of revenue growth has been a heavy anchor on this stock trading at an expensive valuation. Through the first three quarters of fiscal 2024, Snowflake has reported top-line growth of 48%, 36%, and 32% (its most recent result). Though growth is decelerating, the relatively small decline from fiscal Q2 suggests the headwinds impacting cloud spending across the industry are almost over.
Source Fool.com