Can Snowflake (SNOW) Stock Avoid Death Crossover, Post-Earnings?

• SNOW stock fell 19.09% in a month and 18.52% in three months. 
• This sharp drop took the price on the verge of death crossover. 

Snowflake Inc. (NYSE: SNOW) stock is declining significantly in August 2023, nearing death crossover. Can August 23 earnings cause retracement? SNOW stock fell 19.09% in a month, and Wall Street experts argue about buying the SNOW stock at the dip. Barclays reduced the price from $203.00 to $190.00, which is still 29.30% higher than the current price. 

Snowflake Inc. (SNOW) Stock – Financial Analysis

Hoping for a rally, many hedge funds altered their positions at Snowflake. BerganKDV Wealth Management LLC raised its position by 153.7% in Q1 2023 and owns 170 shares worth $26,000. Global Trust Asset Management LLC also increased its position by 7,500% in Q2; they now own 152 shares worth $27,000. 

Nelson Van Denburg & Campbell Wealth Management Group LLC swelled its position by 333.3% in Q1 and owned 130 shares worth $29,000. M&R Capital Management LLC raised stakes by 100% in Q2 and owns 200 shares worth $31,000. Zacks Consensus Estimate estimates a top line of $661.75 Million with a year-over-year (YoY) jump of 33.08%. 

The growing adoption of Snowpark by engineers and data scientists is expected to aid in the expected revenue. The rally would also depend upon its string partners like Nvidia Corp. (NASDAQ: NVDA) falling 0.10% to $432.99, Microsoft Corp. (MSFT) down by 0.13% to $316.48, and Amazon.com Inc. (AMZN)  falling 0.57% to $133.22. 

Snowflake Inc. (NYSE: SNOW) – Technical Analysis

SNOW stock, at press time, is trading at $147.63, gaining 0.47%; previous close and open were at $146.94 and $144.49, respectively. The 52-week range is from $119.27 to $205.66, hinting the recent drop could make new lows. With a volume of 5.85 Million shares, the market cap is $48.113 Billion. 

The trailing twelve-month (TTM) earnings per share (EPS) is negative $2.74, showcasing financial weakness. Also, the gross profit (TTM) is $1.35 Billion. Analysts placed a price target at $191.29 with a 29.6% upside and provided a 2.71 rating for moderate buy. 

Snowflake reported previous earnings on May 4, 2023, where the reported revenue of $623.599 Million surpassed the expected value of $613.168 Million by 1.70%. At the same time, the reported earnings of $0.15 per share also exceeded the estimated value of $0.078 per share by 91.17%. Despite this positive earnings report, the SNOW stock price fell by 19.78%. 

Compared with the previous quarter, revenue jumped 47.64%, while EPS gained a whopping 2,778.57%. The subsequent earnings will be reported on August 23, 2023, where the revenue could be around $662.217 Million, while EPS should be at $0.103. While revenue (TTM) is $2.27 Billion, the year-over-year (YoY) quarterly revenue growth is 47.60%. 

Snowflake Inc. (SNOW) Stock – Can it Avoid Death Crossover?

When 50EMA crosses 200EMA from above, it’s a death crossover and places price action in a bearish mode for a longer time frame. SNOW stock price must not cross the selling zone to avoid a death crossover here. After the recent drop, there could be a pullback but not strong enough to cross immediate resistance at $160.61. 

Previously attained golden crossover failed after a significant drop. The RSI at 32.62 hints at a slight jump, while 200EMA remains flat. If the upcoming earnings on August 23, 2023, come exceedingly positive, the price could cross the $160.61 mark and avoid the death crossover. 

Disclaimer:

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.