Snowflake Inc. (NYSE: SNOW) saw its shares plunge 9.69% during Thursday's intraday session, reversing a 72% year-to-date rally as investors reacted to the company's weaker-than-expected fourth-quarter revenue outlook.
The cloud-data platform reported Q3 revenue of $1.21 billion (beating estimates) but forecast Q4 product revenue growth of just 27% year-over-year ($1.195B-$1.2B), below the high bar set by its recent performance. Analysts noted the guidance overshadowed positive metrics like remaining performance obligations (+37% to $7.88B) and a new $200M AI partnership with Anthropic.
Wall Street remains divided, with some analysts citing strong bookings while others flagged margin pressures and competition. The stock's premium valuation (165x forward earnings) amplified the sell-off as growth expectations reset.

