SNOW - 1 Reason to Buy Snowflake and 1 Reason to Sell
2023-06-28 05:23:00 ET
Technology stocks showed impressive momentum in the market this year thanks to the artificial intelligence (AI) hype, which explains the solid 29% gain in the Nasdaq Composite so far in 2023.
However, not all companies benefited from the surge in tech stocks. Cloud-based data platform provider Snowflake (NYSE: SNOW) got bogged down by slowing near-term growth on account of weakness in customer spending. The company slashed its guidance for fiscal 2024 when it released its first-quarter results last month (for the three months ended April 30, 2023).
Investors panicked and sold Snowflake shares in droves . This explains why this cloud stock delivered a relatively weaker return of 23% year to date as compared to the Nasdaq. However, investors looking for a growth stock may be tempted to take advantage of Snowflake's underperformance so far in 2023. Let's see why and offer up one reason to buy and one reason to sell Snowflake stock.
For further details see:
1 Reason to Buy Snowflake, and 1 Reason to Sell