Snowflake Stock Brushes Off Disappointing Forecast

Short-seller report takes aim at FSR

Digital Content Manager
Dec 1, 2022 at 3:20 PM
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Stocks are mostly faltering this afternoon, as investors kick off the last month of 2022. Costco Wholesale Corporation (NASDAQ:COST) and Fisker Inc (NYSE:FSR) are at least partially blame for this negative price action, while Snowflake Inc (NYSE:SNOW)  seems to be bucking the trend. Below is a quick look at what's moving shares of COST, FSR, and SNOW.

Options Trader Blast COST

Costco stock is the biggest loser among the three, last seen down 6.7% at $502.98. Today's bear gap comes after the retailer reported net sales for November increased just 5.5% year-over-year, a substantial decline from last month's annual jump of 7.7%. 

Bullish and bearish bets are running neck and neck in the options pits. So far today, 43,000 calls and 44,000 puts have crossed the tape, which is triple the volume that's usually seen at this point. Most popular is the 12/2 520-strike call, followed by the 500-strike put in the same weekly series, with new positions currently being opened at both.

Bankruptcy Fears Cast Shadow on FSR

Meanwhile, a Fuzzy Panda Research report that said Fisker's "cash is tied up" as bank guarantees to manufacturing partner Magna International (MGA) is negatively impacting the shares. Plus, the short seller drew parallels between the company and Electric Last Mile Solutions, which filed for bankruptcy earlier this year.

The equity is down 5.1% to trade at $7.34 this afternoon, with its latest rally also falling short of the $9 region, which has acted as a ceiling since mid-September. What's more, 120-day moving average has acted as pressure for most of 2022, and year-to-date FSR is down 53.5%.

SNOW Pivots Higher Post-Earnings

On the other end of the spectrum is SNOW, which is up 6.1% at $151.55 this afternoon.  The company reported better-than-expected third-quarter earnings and revenue due to strong demand. However, the software name also announced a bigger quarterly loss amid higher expenses, and issued a disappointing current-quarter product revenue forecast.

Long puts have been more popular than usual in the options pits. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Snowflake stock's 50-day put/call volume ratio ranks in the 92nd percentile of its annual range.


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