What's Going On With Snowflake Stock?

Snowflake Inc SNOW shares are in the spotlight Wednesday ahead of the company’s earnings results, which are due after the bell.

What To Know: Snowflake is set to report fourth-quarter financial results after the market close on Wednesday. The company is expected to report earnings of 18 cents per share on revenue of $759.25 million, according to estimates from Benzinga Pro.

Snowflake has beat analyst estimates on both the top and bottom line in 12 straight quarters heading into Wednesday’s report. Last quarter, Snowflake credited its better-than-expected results to “strong execution in a broadly stabilizing macro environment.” The company also guided for product revenue growth of 29% to 30% in the fourth quarter.

Multiple analysts have raised price targets on the stock ahead of earnings. Wedbush maintained Snowflake with a Neutral rating and raised the price target from $144 to $210 on Wednesday, a day after Citigroup raised its price target from $255 to $290 and Piper Sandler reiterated an Overweight rating. Last week, Needham raised its price target from $225 to $265 and UBS lifted its price target from $185 to $225.

Check This Out: Snowflake Q4 Preview: Analyst Sees ‘Outsized Benefit’ From AI Growth, Cloud-Native Data Platform ‘Disrupting A Massive Market’

SNOW Stock Prediction 2024

Snowflake’s revenue growth in FY23 was 69.41%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company’s future prospects.

Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at 0.3%, growing 0.9% from last year. The unemployment rate was most recently reported as 3.7%.

An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for Snowflake stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

SNOW Price Action: Snowflake shares were relatively flat at $233.46 at the time of publication, according to Benzinga Pro.

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