Editor's note: The information in this story was sourced from a blog post that has since been removed. This story has been updated with additional details.
Snowflake Inc. (NYSE:SNOW) shares are trading lower Friday amid circulation of a HudsonRock report suggesting the company suffered a breach. Here's a look at what's going on.
What To Know:
HudsonRock claimed to have directly communicated with the threat actor behind a massive data breach of the cloud storage giant and mentioned a statement released by Snowflake regarding an industry-wide identity-based attack that may have impacted its customers.
“We have not identified evidence suggesting this activity was caused by a vulnerability, misconfiguration, or breach of Snowflake's platform,” a Snowflake spokesperson said in a statement to Benzinga.
Snowflake reported mixed first-quarter results last week with revenue increasing 33% year-over-year to $828.7 million, beating the consensus estimate of $785.87 million. However, the company reported earnings of 14 cents per share, missing analyst estimates of 18 cents per share.
The company also lowered its expectations for gross margin and its adjusted operating margin for the second quarter which executives explained is a result of large expenses required to build the necessary infrastructure for AI.
However, the company sees second-quarter product revenue in a range of $805 million to $810 million, up 26% to 27% on a year-over-year basis. Snowflake also expects full-year product revenue of $3.3 billion, up 24% year-over-year.
The stock has traded lower following the earnings report and forward guidance as investors digest the report and analysts weigh-in.
Related News: Marvell Reports Worse-Than-Expected Q1 Results: The Details
Will SNOW Stock Go Up?
When trying to assess whether or not Snowflake will trade higher from current levels, it's a good idea to take a look at analyst forecasts.
Wall Street analysts have an average 12-month price target of $203.48 on Snowflake. The Street high target is currently at $240 and the Street low target is $125. Of all the analysts covering Snowflake, 19 have positive ratings, 5 have neutral ratings and one has a negative rating.
In the last month, 21 analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Snowflake have performed in recent history.
Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Snowflake is 22% down year-to-date. The average analyst price target suggests the stock could have further upside ahead.
For a broad overview of everything you need to know about Snowflake, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.
SNOW Price Action: According to Benzinga Pro, Snowflake shares are down 4.19% at $135.04 at the time of publication Friday.
Image: Courtesy of Snowflake, Inc.
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