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Prominent banking experts have significantly weakened their bullish stance on: snowflake (New York Stock Exchange: Snow) Shares fell sharply as the trading week began, and the company’s shares have since fallen, closing 5.5% lower on Monday. It wasn’t a particularly memorable day for stocks in general, but Snowflake’s decline was much larger than the day before. S&P500 The index is 0.1%.
City makes big cuts
Behind this movement is citygroup Analyst Tyler Radke. Well before the market opened for the day, he slashed Snowflake’s price target by $50 per share to a new level of $290. This doesn’t mean he’s ready to let go of the stock, as he maintained his buy recommendation.
The reasons behind Radke’s cuts were not immediately clear. However, that’s not a big surprise. The announcement comes after a tumultuous week for the cloud data warehousing specialist. In doing so, the company announced fourth-quarter results that convincingly beat analyst expectations, but current first-quarter guidance did not meet consensus.
On top of that, Snowflake unexpectedly announced that CEO Frank Slootman is stepping down. He was replaced by Sridhar Ramaswamy, an internal hire and former senior vice president of artificial intelligence (AI). The transition appears to have been smooth. Still, investors are spooked when leaders of successful companies walk away with little or no warning.
Further reductions and even downgrading of recommendations
Radke wasn’t the only analyst to be bearish on Snowflake. Other prophets made similar moves, with two banks HSBC and morgan stanley, even going so far as to lower its recommendation on the stock. The former reduced it to the equivalent of a sell, the latter to the same weight or hold.
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HSBC Holdings is an advertising partner of The Motley Fool’s Ascent. Citigroup is an advertising partner of The Motley Fool’s Ascent. Eric Volkman has no position in any stocks mentioned. The Motley Fool has a position in and recommends Snowflake. The Motley Fool recommends HSBC Holdings. The Motley Fool has a disclosure policy.
Why Snowflake Stock Drops Almost 6% Today was originally published by The Motley Fool
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