Snowflake and Salesforce.com both reported fourth-quarter results
Snowflake Inc (NYSE:SNOW) and Salesforce Inc (NYSE:CRM) are moving in vastly different directions today, after the cloud computing companies both reported quarterly results.
SNOW Falls After Ice-Cold Forecast, C-Suite Change
Shares of cloud data storage name Snowflake are 19.4% lower at last glance, last seen trading at $185.44. Not only did the company’s first-quarter outlook disappoint, CEO Frank Slootman, who took the company public in 2020, is also retiring.
In response, SNOW drew a slew of bear notes, including at least 20 price-target cuts. Most notable was Morgan Stanley’s note, which included a downgrade to “equal weight” from “overweight” and a price-target cut to $175 from $230. The 12-month target price of $230.15 is a 24.8% premium to current levels, while 26 of 39 covering brokerages still rate SNOW a “buy” or better. This means more bear notes could be on the way.
Today’s fall dragged Snowflake stock below its year-to-date breakeven level, now down 7.1% in 2024. The equity also just crossed back below its 80-day moving average for the first time since early November.
Analysts Lift Blue Chip’s Price Target
The brokerage bunch is chiming in on Dow component Salesforce stock as well, after the company’s downbeat annual revenue growth forecast. This was lighter than what analysts expected, but sentiment got a boost from better-than-expected fourth-quarter earnings and revenue.
No fewer than 20 analysts lifted their price targets on the tech stock. Raymond James looks to be the most optimistic, moving all the way up to $380 from $300. There’s room for upgrades, too, considering 13 of 40 covering firms rate CRM a “hold” or “strong sell.”
Last seen up 1.1% to trade at $303.29, the stock earlier secured a fresh two-year high of $308.50. On a closing basis, the $280 level stepped up to save two recent pullbacks, and more recently the $295 area has acted as a floor. Salesforce stock is up more than 81% in the last 12 months, and now boasts a nearly 15% year-to-date lead.