Snowflake stock has often realized higher-than-expected volatility
Shares of Snowflake Inc (NYSE:SNOW) are plummeting 10% to trade at $238.57 this morning, trading back near their late-November lows after the software company's Q4 operating margin guidance disappointed investors. This overshadowed a third-quarter earnings and revenue beat, as well as news of a $200 million AI deal with Anthropic.
Despite the negative price action, no fewer than eight analysts have handed out price-target hikes after the event, including to $290 at Wells Fargo and Scotiabank. Another handful of bull notes could be around the corner, with six of the covering brokerages sporting a "hold" or "strong sell" recommendation.
Ahead of today's drop, SNOW had been attempting to recover from its Nov. 21 pullback below $230, which came just weeks after the stock tapped a three-year high of $280.67 on Nov. 3. This pullback was captured by the 100-day moving average, however, a historically supportive trendline for the shares. Snowflake stock remains 54% higher year to date.
Lastly, Snowflake stock's comes in at 79 out of 100. This means the security has consistently realized higher volatility than its options have priced in.