The company issued a disappointing second-quarter outlook
Cloud-computing concern Snowflake Inc (NYSE:SNOW) reported better-than-expected first-quarter earnings and revenue after yesterday's close, but a dismal second-quarter outlook is weighing on the shares. No fewer than eight analysts already cut their price targets on SNOW, including J.P. Morgan Securities and UBS to $155 from $165 and $170, respectively.
Last seen down 16.3% to trade at $148.33, the equity is extending its pullback from $185 -- its highest intraday level so far this year. Shares are now pacing for their worst day ever, and lost support from their 20-day moving average, though they still carry a 5.2% year-to-date lead.
Options traders are not holding back, with 22,000 puts and 17,000 calls exchanged so far today, which is seven times the volume that's typically seen at this point. The most popular is the weekly 5/26 150-strike put, suggesting traders expect more downside by tomorrow's close, when these contracts expire.
Today's penchant for puts stands in stark contrast to SNOW's 50-day call/put volume ratio of 1.93 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the 92nd percentile of its annual range.