Why Snowflake’s Earnings Beat Expectations Caused the Stock to Tumble

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Snowflake's stock fell despite beating earnings expectations due to a slight slowdown in product revenue growth, which was below investor expectations.

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Market impact analysis based on bearish sentiment with 79% confidence.

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Bearish
ثقة الذكاء الاصطناعي
79%

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Snowflake stock tumbled early Thursday after releasing earnings, and its another clear example that a “beat” isn’t always a beat. Product revenue rose 29% year-over-year in the quarter to $1.16 billion versus estimates of $1.13 billion, but that is a slight slowdown from the 32% year-over-year growth in the last quarter. Expectations were also high heading into Snowflake’s earnings report, with shares up 72% this year, and product revenue growth was likely a percentage point below investor expectations, according to KeyBanc analyst Eric Heath.

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