Snowflake Inc. (NYSE:SNOW) is in the spotlight Wednesday ahead of third-quarter earnings after the market closes.
- SNOW shares are trending higher. See what the experts say here.
What To Know: Analysts estimate that Snowflake will report earnings per share of 31 cents and revenue of $1.18 billion after the bell on Wednesday.
For the prior quarter, the company reported earnings per share of 35 cents, beating the consensus estimate of 27 cents. In addition, Snowflake reported revenue of $1.14 billion, beating the consensus estimate of $1.09 billion.
“Thousands of customers are betting their business on Snowflake and more than 6,100 accounts are using Snowflake's AI every week,” CEO Sridhar Ramaswamy said last quarter.
“We have an enormous opportunity ahead as we continue to empower every enterprise to achieve its full potential through data and AI.”
Snowflake guided for third-quarter product revenue in the range of $1.125 billion to $1.13 billion, up approximately 25.5% year-over-year.
The company has a strong history of beating the consensus estimate for both revenue and earnings per share, according to Benzinga Pro.
Analyst Changes: Ahead of the earnings report, multiple analysts issued price target adjustments.
- Citigroup analyst Tyler Radke maintained a Buy rating on Snowflake and raised the price target from $275 to $310.
- Rosenblatt analyst Blair Abernethy maintained a Buy rating on Snowflake and raised the price target from $250 to $275.
SNOW Analysis: Snowflake stock is trading about 29% above its 200-day moving average, suggesting strong long-term momentum.
The stock has demonstrated significant volatility over the past year, with a 52-week range of $120.10 to $280.67. This range highlights the potential for both risk and reward, as the stock has nearly doubled from its lows. The current price is approaching the upper end of this range, which may act as a resistance level.
Intraday trading on Wednesday saw the stock open at $262.58, reaching a high of $266 before pulling back slightly. The low for the day was $256.79, indicating that the stock has maintained a relatively tight trading range, reflecting investor confidence in its current valuation.
From a technical perspective, the stock appears to be in a bullish phase, supported by its position above both the 50-day and 200-day moving averages. The next key resistance level to watch is around $280, while support can be identified near the $256 mark, which aligns with the recent intraday low.
Market conditions remain favorable for growth stocks like Snowflake, particularly as the technology sector continues to show resilience. Investors should keep an eye on broader market trends and the upcoming earnings report, which could influence the stock’s trajectory in the near term.
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SNOW Price Action: At the time of writing, Snowflake shares are trading 2.51% higher at $266.21, according to data from Benzinga Pro.
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