Snowflake Drops6% As Cloud Software Stocks Continue to Stumble

Snowflake

Snowflake (NYSE:SNOW) shares fell more than 6% Thursday as the cloud-based data platform company gave back a big chunk of its prior-day's gains in another broad selloff across the tech sector.

Snowflake's (SNOW) erratic activity has seen the company's shares fall to a 52-week-low of $110.26 on Tuesday, and then close at $122.54 on Wednesday following upbeat reaction to its Snowflake Summit user conference and investor day earlier this week. Truist Securities analyst Joel Fishbein spoke for many Snowflake (SNOW) watchers saying, "We have high confidence that the company will hit their $10B revenue target."

But, on Wednesday, Snowflake (SNOW), and other cloud-based software stocks found no relief, as more fears of a recession took over Wall Street, and sellers drove the Dow Jones Industrial Average (COMP.IND) fell below 30,000 points for the first time in more than a year.

Along with Snowflake (SNOW), other cloud companies headed into the red, with Salesforce (CRM) down more than 3%, Oracle (ORCL) and Adobe (ADBE) both off by 2.5%, ServiceNow (NOW) down by more than 5%, DataDog (DDOG) falling 7% and MongoDB (MDB) off by more than 6%.

Snowflake's (SNOW) losses also came on the heels of Canaccord Genuity analyst David Hynes raising his rating on the company's stock to buy from hold on the grounds that the shares are undervalued.