Snowflake Stock Slips Ahead Of Q3 Earnings: Retail Sentiment Down

Shares of Snowflake Inc. ($SNOW) were down more than 1% on Wednesday ahead of the AI-driven cloud warehouse provider’s third-quarter earnings, pushing down retail sentiment.

Snowflake will report its third-quarter earnings report after the bell today.

Wall Street analysts expect Snowflake to post Earnings Per Share (EPS) of $0.15 on revenue of $899.31 million, according to Stocktwits data. The company has beaten estimates thrice out of the last four quarters.  
In Q2, its revenue came in at $868.8 million, a 29% jump over the previous year, while its product revenue stood at $829.3 million, representing 30% growth year-on-year (YoY).

Retail sentiment turned to ‘bearish’ (50/100) from ‘extremely bullish’ (78/100) a day ago. While message volumes moved into the ‘extremely high’ zone.

 SNOW sentiment meter and message volumes on Nov 20 as of 12:20 pm ET| Source: Stoktwits

On Tuesday, brokerage Loop Capital reissued a ‘Buy’ rating with a price target of $185 for the company.

The brokerage cited Snowflake’s consistent track record of product revenue outperformance which over the past eight quarters saw an average beat of about 3.5%, Investing.com reported.

Loop Capital stated it was confident Snowflake would beat its product revenue estimate of $856 million.

Meanwhile, Citi analyst Tyler Radke lowered its price target for Snowflake to $183 from $200 with a “Buy” rating, Insider Monkey reported, noting Radke expects a 2-3% revenue beat from the company.

“We expect SNOW to deliver solid Q3 results and nudge fiscal year estimates higher," Investor’s Business Daily reported, citing Evercore ISI analyst Kirk Materne. "While the stock remains in 'show me' mode, we believe that even a slight bump to the Q4 guide could be enough to build on some of the recent gains, with the key to unlocking more upside being a stabilization in revenue growth coupled with operating margin expansion."

Stocktwits users had mixed reactions before the earnings, with one bullish user suggesting the stock could reach $175.

Snowflake’s stock is down 32% year-to-date.