Snowflake Inc. SNOW shares are trading down Thursday after the company posted first-quarter financial results and lowered product revenue guidance for fiscal year 2024.
What To Know: Snowflake's reported first-quarter revenue of $623.6 million beat estimates of $608.36 million, according to Benzinga Pro. Second-quarter revenue is expected to be in the range of $620 million to $625 million.
Product revenue was up 50% year-over-year at $590.1 million and net revenue retention rate was 151%. Full-year product revenue is now expected to be $2.6 billion.
Altimeter Capital's Brad Gerstner remained positive on Snowflake following the disappointing quarter.
In a Thursday interview on CNBC's "Fast Money Halftime Report," Gerstner said AI requires both data and compute and Snowflake is one of the companies providing the data. He highlighted recent AI-focused acquisitions by the data company.
"They're clearly getting ready for this next wave of AI," Gerstner said. "If you want to bet on the future of AI ... it's not just compute, but it's also data, and the modern data stack businesses are also going to be beneficiaries in the years ahead."
Snowflake received several price target changes Thursday morning, ranging from $155 to $215.
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SNOW Price Action: Shares of Snowflake were down 16.7% at $147.53 at the time of publication, according to Benzinga Pro.
Image by Gerd Altmann from Pixabay
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