Snowflake Sees Increased Demand for Put Options Amid Stock Slump After Earnings

The stock plunged 15% to $115.21 after the company reported second quarter revenue growth that slowed to 28.9% from 35.5% a year earlier. That overshadowed better-than-expected adjusted earnings per share and the 2025 outlook that slightly surpassed Bloomberg consensus.

More than 23,640 of put options giving the holder the right to sell the stock at $100 changed hands across 17 expiration dates that stretch through Dec. 18, 2026. Among them was a block trade where the buyer paid a premium of $798,000 for 5,700 contracts expiring in 57 days. That bearish trade was posted just minutes after the market opened Thursday.

Snowflake forecast a 26% growth in product revenue to $3.35 billion in the fiscal year ending Jan. 31, 2025. That's slower than the 38% it posted in the previous year. It implies a deceleration in the second half of the year, JPMorgan analyst Mark Murphy was quoted by Bloomberg as saying. The analyst cut its price target on the stock to $175, from $185.

The company fell short of igniting the catalyst needed to improve investor sentiment after reporting a smaller product revenue beat and further growth slowdown seen in the second quarter, Morgan Stanley analyst Keith Weiss, who has an equal-weight rating on the stock, was also quoted by Bloomberg.

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