SNOW is Falling on Wall Street!

Shares of Software-as-a-Service company Snowflake (SNOW) fell 6.42% during day trading to a price of $145.43, making it our loser of the day. The NYSE listed company underperformed its composite index by -5.68% on a relatively light day of trading with a volume of 6,783,474 compared to its average of 7,924,585.

Snowflake was not the only enterprise software company that fell today. Its competitors Datadog and MongoDB also plunged over 6% each among fears of a continued strengthening of the dollar -- which might dent these firms’ growth ambitions abroad. The strength of the dollar relative to other currencies such as the Euro, Yen, and Yuan makes contracts with American SaaS firms more expensive when compared to their foreign competitors.

SNOW is now trading 65% below its 52-week high of $405. Since their listing on September 16, 2020 shares of SNOW have risen 20%, compared to 13% for the S&P 500 and 6% for the Nasdaq 100 over the same period. Within the last twelve months corporate insiders have made 54 purchases and 333 sales for 3,540,803 and 5,846,237 shares respectively. 4.13% of SNOW’s outstanding shares are tied into short positions, and its top shareholders are ICONIQ Capital, LLC, Altimeter Capital Management, LP, and Morgan Stanley.

In terms of fundamentals, Snowflake’s free cash flow, revenue, and net income trends have been generally positive since 2019. Net income refers to the profit leftover after all costs and taxes have been accounted for, and free cash flow refers to the amount of money immediately available to meet costs and to pay investors. Its debt levels are stable and the company’s debt quality has not been subject to any recent downgrades.

Since Snowflake was nominated the loser of the day on July 12, 2022, its stock price has increased 3.5% to $150 per share. Most analysts rate the stock as a Buy, with an average target price of $199.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.