Dec. 4 at 1:49 PM
$SNOW slumped 8% in premarket trading on Thursday after the cloud data analytics company forecast slower product revenue growth for the fourth quarter, partly hit by discounts offered on the large, long-term deals.
However, at least 13 brokerages raised their price targets on the stock, encouraged by the signs of adoption in the company's AI offerings.
If premarket losses hold, Snowflake could lose around
$7 billion from its market value of nearly
$90 billion. The company's shares have risen over 70% so far this year.
The company also announced a
$200 million multi-year agreement with Anthropic to bring Claude models to its platform.
Snowflake's product revenue was "undoubtedly decent" but was slightly below investor expectations after peers like Datadog
$DDOG , Confluent
$CFLT and MongoDB
$MDB show impressive performance, analysts at Scotiabank said in a note.
