SNOW - 1 Critical Reason Snowflake Stock Has Declined by 56%
2024-03-06 05:49:00 ET
Snowflake (NYSE: SNOW) helps businesses extract more value from their data through its innovative Data Cloud. It was one of the hottest stocks when it went public in 2020, even attracting a small investment from Warren Buffett's Berkshire Hathaway .
While Snowflake stock still trades above its $120 IPO price, it's down 56% from the all-time high it reached in late 2021. The company is growing far more slowly today than it was a few years ago, and this slowdown is attributable to a few things.
First, Snowflake's business has matured so delivering lightning-fast growth is increasingly difficult. Second, the cloud computing company is grappling with macroeconomic challenges stemming from elevated inflation and interest rates , which have forced businesses to tighten their spending.
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1 Critical Reason Snowflake Stock Has Declined by 56%