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Snowflake Stock Eyes Best Day Ever After Earnings

Analysts and options bulls are chiming in

Deputy Editor
Nov 21, 2024 at 10:13 AM
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Snowflake Inc (NYSE:SNOW) stock is up 31.1% to trade at $169.31at last glance, on track for its best-ever single-day percentage gain after the software maker reported a third-quarter earnings beat o  20 cents per share and better-than-expected revenue of $942 million.

In addition, the company anticipates $3.43 billion in fiscal 2025 product revenue, which is well above the $3.36 billion forecasted three months ago. Snowflake also added 369 customers to bring its total up to 10,618 at the end of October, which also surpassed expectations.

No fewer than 14 analysts adjusted their objectives higher. Needham and D.A. Davidson stood out as the most bullish out of the bunch, moving their targets up to $200 -- an over 55% premium to SNOW's last close. With 13 of 41 firms in coverage still recommending a "hold" or worse rating, there's also still room for upgrades.

In the options pits, SNOW is seeing 20 times the average intraday options volume, with 199,000 calls and 61,000 puts traded so far. New positions are being opened at the top six contracts, led by the weekly 11/29 180-strike call. 

Today's bounce has Snowflake stock trading at its highest level since March, as it extends a bounce off of early September, more than two-year lows. Shares are also breaking above their 160-day moving average, which moved in as pressure in March. SNOW still carries 17.1% year-to-date loss, though.

 

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