Snowflake shares drop 20% on CEOs retirement, weak guidance
Summary
Shares of Snowflake dropped 20% during Thursday morning trading, a day after the cloud software company announced that billionaire CEO Frank Slootman will retire and be replaced by Sridhar Ramaswamy, Google s former ad chief. Morgan Stanley analysts downgraded their rating of Snowflakes stock to equal weight from overweight and lowered their price target to $175 from $230, writing in a note to investors Thursday that the companys fourth-quarter results could open "a Pandoras Box of Competitive Concerns." "A sharper than anticipated deceleration implied in the FY25 guide and CEO departure likely spikes investor concerns around competition and positioning for Generative AI," they wrote. Analysts at Macquarie Equity Research wrote that Slootmans departure is "the entry point we awaited," upgrading the stock to an outperform and raising their target price from $182 to $205. Dont miss these stories from CNBC PRO: • Berkshire Hathaway is one of the most overbought stocks on Wall Street.
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