To The Moon

Tech Stocks to Sell: Snowflake (SNOW)

Snowflake(NYSE:SNOW) is the first of our challenged tech stocks to sell.

Shares of SNOW melted 65% from their peak stock price of $405 set back in November. But despite the heftier correction in this 10-year old, large-cap, cloud-based data platform play, this is one instance where cheaper, even significantly less expensive, doesn’t necessarily translate into value. Not today at least.

Amid our current market environment, past greedy investor behavior of riding growth momentum to excessive levels isn’t likely to make a comeback anytime soon. As much, SNOW’s nosebleed forward earnings valuation north of 1,100,inflated PEG Ratio of nearly 5.5and balloon-like sales multiple of 31 should remain troubling headwinds for this tech stock to sell.

The price chart in SNOW stock is also warning investors to exit or consider shorting a name which is still in dire need of bearish re-pricing.

As the illustrated reveals, after rallying off its bear market low, shares this month have a weekly inside candlestick topping pattern. With the formation also reversing back through channel and failed Fibonacci support and sporting a bearish overbought stochastics crossover, this tech stock to sell is ready to sink your teeth into.