Why Snowflake Stock Crashed Today
Shares of Snowflake (NYSE: SNOW) plunged on Thursday after the data analytics company's revenue forecast fell short of investors' lofty expectations. By the close of trading, Snowflake's stock price was down 15.6%.
Snowflake's revenue soared 101% year over year to $383.8 million in its fiscal 2022 fourth quarter, which ended on Jan. 31. While impressive at first glance, that marked a deceleration from the 110% growth Snowflake experienced in the third quarter and 124% growth in fiscal 2021.
Still, it's clear that Snowflake's customers are finding value in its products. The cloud software provider's net revenue retention rate checked in at a remarkable 178%. Essentially, this means that Snowflake's existing clients increased their spending on its platform by 78% from the prior-year period. CEO Frank Slootman said the gains were "driven by continued growth from our largest customers."
Source Fool.com
