• From Nasdaq:Feb 29, 2024

  Cloud data storage services provider Snowflake saw a 21% drop in shares after projecting lower annual revenue and CEO retirement. Market value loss could reach $16 billion. Revenue forecasts for FY 2025 and April quarter fell short of Wall Street estimates, impacted by product changes. Competitors signal cloud growth stabilization this year as Snowflake faces CEO succession challenges.

Analysts note potential impacts from Snowflake’s Iceberg Tables product on storage sales. Revenue projections may be conservative, excluding assumed consumption from new products. Cloud services providers like Microsoft, Amazon, and Google expect growth stabilization after optimization in spending. Snowflake’s stock trades at a higher multiple compared to competitors like MongoDB and DataDog.

CEO Frank Slootman’s retirement and insider Sridhar Ramaswamy’s appointment create challenges for Snowflake amid disappointing forecasts. Slootman played a key role in the IPO and company’s growth. Salesforce also forecasts lower revenue but announces dividends and share buyback program expansion. Snowflake’s stock performance lags behind Datadog and MongoDB.

Read more at Nasdaq: Snowflake shares sink on weak forecast, surprise CEO retirement