Crypto Stock Hits Record Low After Delaying Annual Report

SI, SNOW, and OKTA are all making outsized moves today

Deputy Editor
Mar 2, 2023 at 1:49 PM
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Wall Street is moving in all sorts of directions today. Snowflake Inc (NYSE:SNOW) and Okta Inc (NASDAQ:OKTA) reported earnings after yesterday's close, while Silvergate Capital Corp (NYSE:SI) delayed its quarterly report. All three stocks are swinging wildly in response, as options traders and analysts alike chime in as well.

Silvergate Hits All-Time Low

Shares of SI, a crypto-friendly holding company, are trading at a new all time low, down 53.7% to trade at $6.27 at last check. This comes after the firm delayed its annual report, bringing its viability into question as uncertainty in the crypto-sphere swirls. Federal prosecutors in Washington are probing the company, with Silvergate writing, "The company is currently analyzing certain regulator and other inquiries and investigations that are pending with respect to the Company."

Bears are feasting today, with more than 241,000 puts traded so far today, volume that's10 times what's typically seen at this point in the session. The two most popular positions are the March 5 put, as well as the weekly series with the same strike, with new positions opening at both. 

JP Morgan downgraded SI to "underweight" while Canaccord Genuity cut its rating to "hold." Both firms, along with Wedbush, slashed their target prices. There's plenty of room for additional price-target cuts, considering the 12-month consensus target price of $11.78 is a 74.3% premium to current levels. 

Snowflake's Revenue Outlook Disappoints 

Cloud data platform Snowflake reported fourth-quarter earnings and revenue that were higher than Wall Street anticipated. However, SNOW was last seen 13.6% lower to trade at $133.51, after the company reduced its revenue growth target to match moderating growth within the software sector. 

Options traders are targeting Snowflake stock from both sides of the aisle today. At last check, more than 103,000 calls and 88,000 puts have crossed the tape, which is six times the intraday average volume Most popular is the weekly 3/3 130-strike put, followed by the 140-strike put in the same series, with new positions opening at both. 

At least seven analysts slashed their price targets as well, with Stifel moving all the way down to $145. There's room for additional adjustments, too, as the 12-month average target price of $181.97 is a 36.2% premium to SNOW's current level of trading.

Okta Shares Strong Guidance 

Okta stock, meanwhile, is 9.4% higher to trade at $78.18, after the company beat top- and bottom-line expectations for the fourth-quarter. The identity management company is breaking higher today, after sharing strong revenue and earnings per share guidance for the current quarter, as well as full-year expectations that are better than previously anticipated. 

In response, 26,000 calls and 12,000 puts have been traded so far today -- six times that amount typically seen at this point. New positions are being opened at the most popular contract, the weekly 3/3 80-strike call. 

TD Cowen raised its rating on OKTA to "outperform" from "market perform" and hiked its price target to $400 from $70. No fewer than 20 additional Wall Street firms also hiked their price objectives, with Piper Sandler and Stifel also moving up to $100. 

 

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