SNOW
Same story, smaller number
KeyCorp just took a machete to its Snowflake price target, chopping it from $235 to $200. But before you start picturing analysts running for the exits, they kept an Overweight rating on the stock — the financial version of saying, “You’re still invited to the party, just maybe don’t wear your fanciest shoes.”
Why this matters
Snowflake has been doing the classic high-growth, high-drama thing:
- It beat the quarter with $0.32 EPS vs. $0.27 expected
- Revenue came in at $1.28 billion, up 30.1% year over year
- But the company still has negative margins, and the street expects about -$2.36 EPS for the current year
So yes, the top line is still humming. The bottom line? Still doing its best impression of a black hole.
Analysts are warm, just less swoony
KeyCorp isn’t alone in nudging expectations lower. Other firms have also trimmed targets, which tells you the market is still trying to figure out whether Snowflake is a future cash machine or just an extremely expensive promise.
What can make investors a little twitchy here:
- Insider selling has been heavy lately
- Legal and security headlines are hanging over the name
- Class-action noise can keep a valuation multiple on a shorter leash than growth bulls would like
Big picture
This isn’t a thesis change so much as a reality check. Snowflake is still growing like a startup wearing a trillion-dollar-sized hoodie, but investors are increasingly being asked to pay attention to the risks, not just the rocket ship. The stock can still work — it just may need to keep proving itself, one quarter at a time.