Snowflake share price: what to expect from Q4 earnings
What can we expect from Snowflake’s (SNOW) Q4 earnings on Wednesday 3 March.
When is Snowflake’s earnings date?
The cloud software company Snowflake is scheduled to report fiscal fourth quarter (Q4) earnings on Wednesday 3 March after the market close.
Snowflake earnings: what to expect from its Q4 results
The business, which is listed on the New York Stock Exchange (NYSE) under the ticker SNOW, is forecast to publish a loss of 36c a share, according to consensus forecasts from Zacks.
SNOW has been one of the companies that has helped other businesses change the way they store their data. Snowflake’s software means that clients no longer need to store data in separate silos, instead the data can now be stored in one place, giving rise to cost savings. Analytics company Slintel says that Snowflake now controls almost half of the data storage market, no mean feat when considering SNOW’s main competitors are behemoths with deep pockets such as Microsoft, Amazon and SAP.
What traders want to hear from Snowflake, when it produces the numbers, is how and when it will begin to benefit from the money that has been spent on research and development (R&D). The third quarter (Q3) release showed that this part of the cost base had more than tripled, year on year, to $74.1 million. R&D headcount has risen from under 300 to 440 people in a year and management need to clarify the benefits behind this investment strategy. So this could be one area to watch when the company makes is statement.
Snowflake share price: technical analysis
The stock listed on 16 September 2020 at $120 each, above the target initial public offering (IPO) price of between $100 to $110 per share and immediately it rose closing out its first day as a listed company at $254, taking the company’s valuation of $33 billion to $88 billion. The stock price has since gained further weight to top out at $428.76 on 8 December 2020. However, subsequent to this shares have moved lower, breaking $260 support.*
In terms of the next move, traders will be waiting until after the earnings release, but the moving average convergence divergence oscillator (MACD), which indicates momentum in price action, is pointing down. Technical analysts believe that momentum precedes price action so this may be taken as an indicator of possible further weakness for the company’s stock.
* Wednesday 24 February 2021
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get commission from just 0.08% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets