Snowflake, a prominent player in the data cloud space, is poised to unveil its financial performance for the second quarter of fiscal year 2024 on Wednesday after the market closes. Analysts are forecasting earnings per share of 16 cents and revenue of $851.16 million.
However, the anticipation surrounding this earnings release is amplified by recent developments. Last Thursday, Snowflake’s stock took a hit following Berkshire Hathaway’s disclosure that they had sold their stake in the company. Berkshire had held 6.1 million shares in Snowflake at the end of the first quarter.
Adding to the mix, several analysts have recently adjusted their price targets for Snowflake. Rosenblatt’s Blair Abernethy maintained a Buy rating with a $195 price target, while Barclays analyst Raimo Lenschow downgraded his rating to Equal-Weight, lowering the price target from $191 to $146. TD Cowen’s J. Derrick Wood stuck with a Buy rating but decreased the price target from $230 to $180. UBS analyst Karl Keirstead retained a Neutral rating and adjusted the price target from $171 to $155. Finally, Evercore ISI Group analyst Kirk Materne maintained an Outperform rating while reducing the price target from $225 to $170.
For those looking to invest in Snowflake, there are various avenues beyond purchasing individual shares. Exchange-traded funds (ETFs) that track the Information Technology sector often include Snowflake within their holdings, providing investors with exposure to this growing segment. Additionally, 401(k) plans may offer strategies that allocate to mutual funds or other instruments holding Snowflake shares.
As of this writing, Snowflake stock is trading up 3.52% at $132.55 per share, according to data from Benzinga Pro. Investors and analysts alike will be closely watching to see how Snowflake’s actual results measure up to expectations and how the company’s future prospects are perceived in light of recent events.
