Snowflake Inc (SNOW) shares are trading lower on Thursday following a double whammy of negative news. Warren Buffett’s Berkshire Hathaway revealed that it completely exited its Snowflake position in the second quarter, and Wells Fargo downgraded the stock.
Berkshire Hathaway’s 13F filing, released on Wednesday after market close, revealed the company’s complete divestment from Snowflake. Berkshire held 6.1 million shares of Snowflake as of the end of the first quarter, having initially invested in the company when it went public in 2020.
Adding to the downward pressure, Wells Fargo analyst Michael Turrin downgraded Snowflake from Overweight to Equal-Weight, simultaneously lowering the price target from $200 to $130. The downgrade arrives just a week before Snowflake is set to announce its second-quarter financial results on August 21. Analysts are expecting earnings of 16 cents per share and revenue of $849.704 million, according to Benzinga Pro.
The news comes at a time when Snowflake shares have already experienced a significant drop of 36% year-to-date. The stock was trading down 2.3% at $124.37 on Thursday morning.
Investors are now keenly focused on Snowflake’s upcoming earnings report, hoping for a positive surprise to offset the recent negative developments.
