Jim Cramer Says Snowflake's Decline Shows a Cohort Issue

Snowflake Inc. (NYSE:SNOW) is one of the stocks Jim Cramer recently discussed. Noting that the stock has been down recently, a caller asked what was wrong with the stock, and Cramer replied:

“Okay, what’s wrong with Snowflake is it’s in a cohort that’s going down, and it’s in baskets that are going down, and it’s considered to be AI, which is going down because everybody who’s saying, ooh, maybe there’s a bubble, the bubble popped, idiots. It popped at the end of October, and I’ve watched these stocks all go down since then. But the people who are sightseeing, liberal arts jokers, are now telling me that there’s a bubble that’s brewing. Dopes. It already popped.”

Snowflake Inc. (NYSE:SNOW) provides a cloud platform that helps organizations pull their data into one place so they can analyze it, build data apps, share information, and use AI to solve business challenges. Cramer highlighted how Wall Street views the company during the December 3 episode, as he remarked:

“What the heck just happened to the stock of Snowflake? The company reported a seemingly robust quarter after the close, and the stock breaking down in after-hours trading. [Does] that make sense? I don’t know. Some of that’s because Snowflake was up more than 70% for the year going into today’s close. This is one of the rare software companies that’s convinced Wall Street it can make a killing from AI rather than just be killed by AI. And the numbers have mostly backed them up. Today, there was a fly in the ointment. Snowflake’s operating margin guidance for the current quarter came in about 7%, analysts were… looking for 8.5%… It was lower than people expected.”

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Disclosure: None. This article is originally published at Insider Monkey.