Why Did Snowflake Stock Drop 14% Last Month?
Shares of Snowflake (NYSE: SNOW) fell 14.2% in March, according to data provided by S&P Global Market Intelligence. Investors reacted negatively to the company's quarterly earnings report on Feb. 28, in which it issued disappointing forecasts for next year and announced the departure of its CEO. This wasn't followed up with any more bad news in March, but it seems the market was skeptical of its expensive valuation ratios in a month that saw value stocks outpace growth stocks.
The company exceeded Wall Street's expectations with $775 million in revenue, marking more than 30% growth. Remaining performance obligations, which contractually obligated revenue that will be recognized in the future, were up more than 40%.
Snowflake also produced $320 million in free cash flow, so it efficiently translated sales expansion into cash returns. The company reported a phenomenal 131% net dollar retention figure, which indicates it is keeping a high percentage of its customers and upselling existing accounts. Those are comprehensively strong results.
Source Fool.com
