Snowflake Stock Plunges 20% as Q4 Beat Tempered by Conservative Outlook and CEO Transition
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Snowflake reported Q4 results, issued conservative guidance for FY25, and announced CEO Frank Slootman is stepping down. The stock plunged over 20% after hours.
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Multiple analysts believe the guidance is overly conservative and expect Snowflake's growth to exceed the 22% product revenue target for FY25.
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New CEO Sridhar Ramaswamy, currently head of AI, could bring innovation in AI to help drive future growth.
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Despite the transitions, analysts still see strong secular tailwinds for Snowflake's data platform and expect significant long-term growth potential.
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The pullback creates a more attractive entry point for investors, though valuation still carries a premium.