The cloud-computing company Snowflake Inc (NYSE:SNOW) reported successful first-quarter earnings and revenue after the market closed yesterday. However, the company’s bleak second-quarter outlook has led to a significant decrease in the company’s stock value. Eight analysts, including J.P. Morgan Securities and UBS, have already reduced their price targets on SNOW to $155 from $165 and $170, respectively.
The company’s equity is currently down 16.3% at $148.33. This is a significant drop from its year-to-date high of $185, causing the stock to have its worst day ever. Additionally, it lost support from its 20-day moving average, although it still holds a 5.2% year-to-date advantage.
Options traders have been actively exchanging 22,000 puts and 17,000 calls, which is seven times more than usual. The weekly 5/26 150-strike put is the most frequently used, indicating that traders expect more losses by tomorrow’s closing. However, it’s worth noting that SNOW’s 50-day call/put volume ratio of 1.93 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) places it in the 92nd percentile of its annual range.
