Why Snowflake Stock Just Bounced
Shares of recent IPO Snowflake (NYSE: SNOW) jumped 6% through 2:30 p.m. EDT trading Tuesday on mixed but mostly positive news out of Wall Street.
On the one hand, investment bank Jefferies cut its price target on the cloud-computing company to $235 per share. Investors, warns the banker, seem to be "taking a breather post [tech stocks'] massive run" from 2020 through early 2021. They're paying smaller multiples to sales and earnings today than they once did. That could put a cap on Snowflake's valuation. Jefferies previously assumed it might be able to rise as high as $280 per share this year; now the analyst is beginning to have doubts.
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Source Fool.com
