In light of the surge in the Snowflake share price since its IPO launch there was always the risk that the first earnings report as a public listed company might fall short. As with any IPO there are always up-front costs that tend to affect headline profits in the first instance.

The progress for the company has certainly been impressive in terms of the actual numbers. In the first half of this fiscal year, the company returned $242m in revenue, leaving it on course to more than double its turnover for this year, to over $540m.

Even so even allowing for that, a share price move to highs of $340 last month does beg the question as to whether there is too much froth in the valuation.

Q3 revenues came in at $159.6m, over double the same period last year at $73m, however the company still remains some way short of being profitable, as losses increased to $168.9m.

The outperformance will no doubt pleases its backers who are Salesforce and Warren Buffet’s Berkshire Hathaway Salesforce and Warren Buffet’s Berkshire Hathaway who both invested over $250m in the business at the IPO price.

Yesterday’s losses were larger than expected, however this wasn’t too much of a surprise, however there was some disappointment over its projections for the upcoming quarter, which were projected to come in between $162m and $167m.

The general consensus was for a number towards the upper end of the projection at $166m, and while the number is still within the wider guidance threshold, some investors may well start to look at taking profit in a sector where competition is already fierce.

Snowflake is operating in the same sandbox as the likes of Amazon, Microsoft and Alphabet and has recently signed deals with Capital One and Goldman Sachs.

Business is certainly looking good, in the short to medium term, however does it justify an $80bn valuation?

Early indications suggest that we could see further weakness in the share price when US markets re-open later today.

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.5% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

AUD/USD keeping its head above 21DMA at 0.7673 for now

AUD/USD saw downside during Monday’s Asia Pacific and early European session, dropping momentarily as low as 0.7660. The pair broke below an uptrend linking the 28 December 2020 high with the 4, 11 and 15 January lows.

AUD/USD News

EUR/USD:Falling wedge on 4H tests bearish impulse below 1.2100

EUR/USD portrays choppy trading moves between 1.2075 and 1.2080 during Tuesday’s Asian session. Bullish chart pattern, recovering MACD keep buyers hopeful. Early February lows, 61.8% Fibonacci retracement add to the downside filters.

EUR/USD News

XAU/USD fades recovery moves below $1,850, awaits fresh clues

Gold eases from the top of an immediate $10 trading range while declining to $1,837 at the start of Tuesday’s Asian session. The yellow metal took a U-turn from the lowest since December 01 the previous day as the US dollar stepped back after refreshing the one-month high.

Gold news

Stellar awaits a massive breakout but remains inside a no-trade zone

XLM has continued to trade sideways since we last reported about it. The digital asset remains locked inside a tightening range which will eventually burst. 

Read more

US Dollar Index: Immediately to the upside comes 91.00

DXY extends the march north and already trades at shouting distance from the 91.00 barrier, or new 2021 highs.

US Dollar Index News

Forex Majors

Cryptocurrencies

Signatures