SNOW Stock: Snowflake Shares Plunge On Weak Sales Outlook Amid CEO Change

Snowflake (SNOW) on Wednesday reported fourth quarter earnings and revenue that beat Wall Street targets. Revenue guidance for SNOW stock for fiscal 2025 came in well below expectations. Snowflake stock plunged as the company announced its chief executive, Frank Slootman, will retire.


The enterprise software maker released its Snowflake earnings report after the market close on Wednesday. Snowflake said a former top executive at Alphabet‘s (GOOGL) Google advertising business, Sridhar Ramaswamy, will be its new CEO.

Ramaswamy had been senior vice president of artificial intelligence at Snowflake. Slootman will continue to serve as chairman of the board at Snowflake.

On an adjusted basis, Snowflake earnings were 35 cents, up 150% from a year earlier. Analysts expected Snowflake to report adjusted profit of 18 cents per share.

Revenue climbed 32% to $774.7 million, the enterprise software maker said. Analysts projected Q4 revenue of $760.9 million.

Snowflake Stock: 2025 Guidance Light

For fiscal 2025, Snowflake forecast product revenue growth of roughly 22% to $3.25 billion versus consensus estimates for 30% growth to $3.43 billion.

On the stock market today, Snowflake stock plunged more than 23% to 175.79 in extended trading.

SNOW stock had advanced 15% in 2024 heading into the Snowflake earnings report. Snowflake stock had gained 54% over the past year.

Snowflake sells data analytics software that runs on cloud-computing platforms. Also, the company has evolved into a cloud data-management software provider.

Snowflake Stock: Technical Ratings

Because Snowflake’s business model is consumption-based rather than subscription-based, investors have raised concerns over a slowing U.S. economy curbing demand.

Further, Snowflake garners about 95% of total sales from product revenue. That’s revenue that comes from cloud-based data analytical and storage services. Snowflake also generates revenue from professional services, such as consulting and training.

SNOW stock holds a Relative Strength Rating of 94 out of a best-possible 99, according to IBD Stock Checkup.

Follow Reinhardt Krause on X, formerly called Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.


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