Snowflake’s shares drop by 8%
American cloud computing data warehouse, Snowflake, is currently experiencing the consequences of failing to meet up to expectations.
Snowflake Inc released its quarterly report where it was seen that the company had incurred a net loss of $203.2 million and its product revenue didn’t meet up with the prediction of financial analysts.
The company’s stock market value went down by 8% on the New York Stocks Exchange.
However, Snowflake recorded a net profit of $228.9 million as opposed to the $212.9 million that was predicted by financial analysts, which is a pointer to a 110% growth that took place within a year.
The Finance Chief of Snowflake, Mike Scarpelli, told financial analysts during a call that the company had put in place a storage compression change that will widen margin while working on chip technologies that would enhance performance in the following year.
Snowflake has stated that its goal for the next quarter is to make $235 million in net profit and $240 million in product revenue, which will bring about a 171% growth to the company.
Financial analysts predict that although investors are watching Snowflake closely to see how the company will perform, its shares will receive momentum again in the stocks market.