Snowflake Stock Surges on Strong Quarterly Results

No fewer than 13 analysts have lifted their price targets

Digital Content Manager
Aug 26, 2021 at 10:13 AM
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Cloud computing name Snowflake Inc (NYSE:SNOW) is surging this morning, after the company reported narrower-than-expected second-quarter losses of 4 cents per share -- lower than Wall Street's anticipated losses of 15 cents per share -- as well as a revenue beat. Though these losses were wider than a year ago, sales have more than doubled. At last check, SNOW is up 6.2% at $301.03.

The brokerage bunch is already chiming in on the upbeat results. So far, the equity has received no fewer than 13 price-target hikes, with the highest coming from Mizuho to $340 from $320. Upgrades could be on the horizon, too, as analysts are lukewarm on SNOW, with 15 of the 25 in question carrying a tepid "hold" rating, while 10 called it a "strong buy."

It has been a volatile year for Snowflake stock so far. Today's pop has helped the equity resume its path higher from a May 13, all-time low of $184.71, though the shares briefly pulled to the $247 mark before bouncing off the stock's 80-day moving average. The security is now trading at its highest level since February, and has added 25.5% quarter-to-date. 

Snowflake's options pits are brimming with activity today. So far, 38,000 calls and 11,000 puts have crossed the tape, which is eight times what is typically seen at this point. Most popular is the 8/27 310-strike call, followed by the 305-strike call also in that series, with new positions being opened at both. This means traders expect more upside for SNOW by the time these contracts expire at the close tomorrow.

 

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