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snowflake (New York Stock Exchange: Snow) Stocks fell sharply on Tuesday. The company’s stock ended the first daily session of 2024 down 5%, according to data from S&P Global Market Intelligence.
While there was no company-specific news behind today’s big stock decline, Snowflake stalled as some big news in the technology sector prompted a rise in bearish sentiment. barclays Analyst Tim Long downgraded the rating. apple The company changed its rating from “neutral” to “underweight” and lowered its one-year price target from $161 per share to $160 per share. In addition to the attention-grabbing drop in audience ratings, the following news has come to light. ASML Under pressure from the U.S. government, the company will halt exports of its advanced semiconductor manufacturing machinery.
These combined factors caused a widespread sell-off in growth-dependent tech stocks, and Snowflake was caught in the pullback.
What does Snowflake’s rocky start to 2024 mean?
Today’s downgrade of Apple’s stock doesn’t say much about Snowflake or the company’s stock’s long-term prospects.
Even after falling 3.6% today, Apple remains the world’s most valuable company with a market capitalization of approximately $2.89 trillion. Due to their enormous size and influence, a growing bearish mood surrounding tech giants often has a ripple effect on valuations across the technology sector.
Alternatively, the news that ASML will stop shipping advanced chip manufacturing machinery to China highlights a significant geopolitical risk factor. Tensions between the United States and China continue to rise, and continued escalation could threaten global economic stability. It is too early to say what the situation will be, but its developments will play a central role in shaping the state of the stock market.
Is Snowflake stock a buy?
Despite today’s decline, Snowflake stock is still up about 32% over last year. While the company’s stock has seen solid gains overall, it lags far behind other top companies with big opportunities in artificial intelligence (AI).
For long-term investors with above-average risk tolerance, I think Snowflake stock looks like a good buy after today’s pullback. The company’s untapped opportunities in AI and broader data software services space could translate into strong revenue and profit growth in the future.
At the same time, investors should proceed with the understanding that the company’s growth-dependent valuation and speculative outlook could result in the stock trading volatile if overall market conditions worsen. be.
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Keith Noonan has no position in any stocks mentioned. The Motley Fool has positions in and recommends ASML, Apple, and Snowflake. The Motley Fool recommends his Barclays Plc. The Motley Fool has a disclosure policy.
Snowflake Stock Falls Today — Is 2024 a Buy? Originally published by The Motley Fool
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