Why Snowflake Plunged Today
Shares of hypergrowth cloud data platform Snowflake (NYSE: SNOW) were falling today, down as much as 7.4% in early-morning trading, before recovering slightly to a loss of 4.9% as of 12:56 p.m. ET.
The sell-off doesn't appear to have anything to do with the company's operational results or news; in fact, shares soared last week after Snowflake's better-than-feared second-quarter earnings report.
However, that may be the reason for the fall today. Investors may be selling recent winners from this earnings season and buying other stocks that plunged last week on the heels of the Federal Reserve chair's hawkish comments. In addition, this morning saw a rise in long-term interest rates, which disproportionately hurts no-profit, high-growth stocks like Snowflake.
Source Fool.com
