Snowflake Sees Increased Demand for Put Options Amid Stock Slump After Earnings
$Snowflake (SNOW.US)$ is seeing increased demand for put options that could protect the holder against further declines as the stock tumbled after the data AI cloud company reported quarterly 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.
![Source: moomoo mobile app](https://ussnsimg.moomoo.com/sns_client_feed/73842169/20240823/1724357260941-af841f2db8.png/big?area=100&is_public=true)
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.
![Source: moomoo mobile app](https://ussnsimg.moomoo.com/sns_client_feed/73842169/20240823/1724357798090-527aba4553.png/big?area=100&is_public=true)
Share your thoughts on Snowflake shares below, and if you have a price forecast, please vote below.
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Options trading entails significant risk and is not appropriate for all customers. It is important that investors read Characteristics and Risks of Standardized Options before engaging in any options trading strategies. Options transactions are often complex and may involve the potential of losing the entire investment in a relatively short period of time. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Supporting documentation for any claims, if applicable, will be furnished upon request. Moomoo does not guarantee favorable investment outcomes. The past performance of a security or financial product does not guarantee future results or returns. Customers should consider their investment objectives and risks carefully before investing in options. Because of the importance of tax considerations to all options transactions, the customer considering options should consult their tax advisor as to how taxes affect the outcome of each options strategy. All company analysis information is provided by third parties and not by Moomoo Financial Inc. Any illustrations, scenarios, or specific securities referenced herein are strictly for informational purposes and is not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal. This content is also not a research report and is not intended to serve as the basis for any investment decision. The information contained in this article does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Furthermore, there is no guarantee that any statements, estimates, price targets, opinions or forecasts provided herein will prove to be correct.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
102338790 : There is no reason
104476495 : hi
Laine Ford : no comment to day
Bullish Law : poor forecast![cry 😢](https://static.moomoo.com/nnq/emoji/static/image/img-apple-64/1f622.png)
103561243 : hi