Why Snowflake Fell 13.8% in March
Shares of data warehouse company Snowflake (NYSE: SNOW) fell 13.8% in March, according to data from S&P Global Market Intelligence. Although a 13.8% decline isn't pretty, Snowflake, which has revolutionized the way enterprises work with data, had been down much more following its fourth-quarter earnings report early in the month before recovering significantly.
Although Snowflake beat analyst expectations for revenue and losses per share, its guidance showed a bit more deceleration than some expected. However, management also offered a very good reason for lower growth expectations, which could be a long-term positive.
In Q4, Snowflake grew product revenue by a whopping 102%, with losses per share of (0.43) also beating analyst expectations. But looking ahead, management projected just 79% to 81% revenue growth for the next quarter and an even lower 65% to 67% revenue growth for the upcoming full year.
Source Fool.com
