Snowflake Inc (NYSE: SNOW) – Pre-Market Prep Day Stock: Snowflake
Benzinga’s PreMarket Prep airs every morning from 8 a.m. to 9 a.m. ET. During this hectic and highly informative hour, traders and investors alike tune in to get the top news for the day, the catalysts behind these moves, and the corresponding price action for the upcoming session.
Each day, the show will cover at least 20 stocks determined by co-hosts Joel Elconin and Dennis Dick with producer Spencer Israel.
Extremely volatile price action in Snowflake Inc. (NYSE: SNOW) since its September IPO continued in Thursday’s session following the company’s first quarter report.
Whipsaw price action makes Snowflake today’s Stock Prep Market.
The company: Founded in 2012, Snowflake is a data lake, warehousing and sharing company that went public in 2020. To date, the company has more than 3,000 customers, nearly 30% of which are Fortune 500.
Snowflake’s Data Lake stores unstructured and semi-structured data that can then be used in analysis to create information stored in its data warehouse. Overall, the company is known for all of its data solutions can be hosted on various public clouds.
Snowflake doubles its IPO: The still-volatile issue saw a wave of price action on the first trading day on September 16, 2020. After opening at $ 245, it rallied to $ 319 and reversed the price. It fell nearly $ 88 to $ 231.11 and rebounded to end the session at $ 253.99.
Six sessions later, it hit $ 208.55 and embarked on a monster rally. It eventually peaked on December 6 at $ 429 and also posted its above close at $ 390 that day.
The fusion of snowflakes: Similar to the upward price action, the retreat to Snowflake has been swift and furious.
It fell from its all-time high to end the year at $ 281.41. It tried to bounce back, but found sellers in the same area in January ($ 325.72) and February ($ 327.41) and failed miserably, ending February at $ 259.54.
The retreat continued this month until the issue finally hit its low on May 13 at $ 184.71.
Snowflake rallies ahead of Q1 report: Since the low for the move, the problem was higher in eight of the last nine sessions. The highest close for the rebound came on Wednesday. Ahead of the report’s release, the issue put in a trio of highs in a narrow zone ($ 236.36 – $ 236.94).
Snowflake Q1 Report: After the close on Wednesday, the company reported a beating in first-quarter EPS – a loss of 12 cents per share against estimates of 16 cents – and a beating in sales, which rose to $ 228.991 million from an estimate. of $ 212 million.
The report did not impress Wall Street analysts as five companies lowered their price targets after printing.
Take Prep Market: When the issue was covered on Thursday’s show, it was trading at $ 230, significantly higher than its after-hours low of $ 215.42.
Co-host Dennis Dick said he regretted not buying the issue on this drop.
“I would buy the dip in this one.” The income report really doesn’t matter [with] growth is back in favor. “
The full discussion of the Thursday show’s issue can be found here:
After a lower open, the issue continued to decline, dropping to $ 220, then grabbing a relentless bid. He easily erased Wednesday’s low ($ 228.30), the close of $ 235.25 and even broke through the trio of highs in the $ 236 grip.
The stock ultimately gained 4.05% during the session, closing at $ 245.15.
From early March through late April, the show posted nine daily highs ranging from $ 240 to $ 243.49.
Photo courtesy of Snowflake.
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