Snowflake Inc. (NYSE:SNOW) shares are in the spotlight Tuesday ahead of the company fourth-quarter earnings report on Wednesday.
Fourth-Quarter Expectations, Recent Performance And What To Watch
Snowflake is expected to report earnings per share of 27 cents on revenue of $1.25 billion. It has exceeded consensus estimates for both earnings and revenue in each of the last four quarters.
In the company’s most recent quarter, Snowflake delivered earnings of 35 cents per share, topping expectations of 31 cents. Revenue came in at $1.21 billion, ahead of the $1.18 billion consensus estimate.
“Snowflake Intelligence, our enterprise AI agent, saw the fastest adoption ramp in Snowflake history and is transforming how businesses interact with their data, delivering real-time, actionable intelligence. Combined with our strategic partnerships with the world’s leading AI model providers, clouds and application platforms, Snowflake is supercharging the entire data lifecycle with AI-driven capabilities,” Sridhar Ramaswamy, CEO of Snowflake, said in the company’s third-quarter earnings report.
Investors should keep an eye on the adoption rates of Snowflake’s new AI tools, as this will be crucial for validating its growth strategy. Additionally, watch for any shifts in customer retention rates and average revenue per user (ARPU), which are key indicators of the company's ability to monetize its platform effectively. Lastly, monitoring the growth in enterprise customer accounts will provide insight into the company’s market penetration and overall health.
Snowflake's Technical Setup Remains Firmly Bearish
Snowflake’s current trading price marks a significant deviation from its moving averages, indicating potential areas of resistance and support that could influence future price movements.
The stock is trading 12.4% below its 20-day SMA of $182.07 and 29.8% below its 100-day SMA of $227.28, suggesting a bearish trend over these periods. Additionally, the death cross observed in February, where the 50-day SMA crossed below the 200-day SMA, further confirms this bearish outlook.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Snowflake, highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Weak (Score: 15.27) — The company shows limited momentum compared to broader market indicators.
The Verdict: Snowflake’s Benzinga Edge signal reveals a cautious outlook with its low momentum score. While it may be outperforming today, the weak momentum score suggests potential challenges ahead, warranting careful monitoring by investors.
Snowflake Shares Edge Higher
SNOW Price Action: At the time of writing, Snowflake shares are trading 2.21% higher at $161.08, according to data from Benzinga Pro.
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