Benzinga - by Melanie Schaffer, Benzinga Editor.
Snowflake, Inc (NYSE: SNOW) was trading near flat on Wednesday, as the company headed into its fourth-quarter earnings print after the market close.
When Snowflake printed its third-quarter results on Nov. 29, the stock was volatile the following day but closed the session up about 7% before continuing in its uptrend, which brought Snowflake to a high of $237.72 on Feb. 12.
For that quarter, Snowflake reported revenue of $734.17 million, which slightly beat the $712.78-million consensus estimate. The company reported earnings per share of 25 cents, beating a consensus estimate of 16 cents.
Ahead of Snowflake’s fourth-quarter print, Citigroup analyst Tyler Radke maintained a Buy rating and boosted the price target from $255 to $290 on Feb. 27, 2024. This analyst has an accuracy rate of 74%. Read more here...
For the fourth quarter, analysts estimate Zoom will print EPS of 18 cents per share on revenues of $759.253 billion.
From a technical analysis perspective, Snowflake’s stock looks bullish heading into the event, working to print a hammer or doji candlestick and having been consolidating recently under the Feb. 12 high. It should be noted that holding stocks or options over an earnings print is akin to gambling because stocks can react bullishly to an earnings miss and bearishly to an earnings beat.
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The Snowflake Chart: Snowflake has been consolidating mostly sideways between $213 and $236 since Feb. 12, showing no clear uptrend or downtrend. On Wednesday, Snowflake briefly dipped to Monday’s low of $226.55, where buyers came in and caused the stock to pop up from that area.
- The slight retracement on Wednesday paired with the uptick in price has Snowflake looking to print a doji or hammer candlestick on the daily chart. If the candlestick is recognized and Snowflake receives a bullish reaction to its earnings print, the stock is likely to push higher on Thursday, possibly making its way to a new high.
- Bearish traders want to see the stock suffer a bearish reaction to the news and for Snowflake to fall under Monday’s low-of-day. If that happens, a new downtrend will be confirmed and downside pressure could accelerate.
- Snowflake has resistance above at $232.30 and at $255.25 and support below at $213 and at $200.
- Featured image sourced from Shutterstock