Snowflake Inc SNOW shares are trading lower by 5.9% to $156.79 going into the close of Tuesday's session. Shares of cybersecurity stocks are trading lower after Datadog issued weak guidance.
Investors may interpret weak guidance from Datadog as an indicator of potential industry-wide challenges. This perception could lead to concerns about reduced demand or other difficulties affecting technology companies, including Snowflake.
In general, weak guidance can erode investor confidence in the company's future performance. If investors lose faith in Datadog's ability to meet expectations, they might also question Snowflake's outlook, leading to a sell-off.
What Else?
Datadog reported adjusted earnings of 36 cents per share, exceeding market projections of 28 cents per share. The company's quarterly sales reached $509.00 million, surpassing estimates of $500.37 million.
For the third quarter, Datadog anticipates adjusted earnings ranging from 33 cents to 35 cents per share, in contrast to estimates of 29 cents per share. The company also projects revenue in the range of $521 million to $525 million, diverging from expectations of $534.48 million.
According to data from Benzinga Pro, SNOW has a 52-week high of $205.66 and a 52-week low of $119.27.
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