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Snowflake (SNOW) is due to report its first quarter results after the close today (May 26th). Shares in the company are worth about a half of the value they were at their peak in 2020.

The consensus estimate for Q1 is $213.36m in revenue and a $0.16 loss per share. In Q4, Snowflake posted a loss per share of $0.70 on a 117% rise in revenues of $190.5 million.

Goldman Sachs put out a note yesterday on the stock, giving it a buy rating with a 12-month price target of $275. “Following a ~40% correction in the stock since its December 2020 highs, we see a path towards outperformance and believe the durability of growth is not fully reflected in the company’s valuation,” they said.

Snowflake is seen as being well-positioned to capitalize on a “generational shift” in data and analytics to the cloud, and replace incumbent data warehousing solutions “owing to their scalable and elastic cloud native”.  GS added: “We continue to expect another strong quarter as the overall demand environment remains resilient.”

Analysts maintain a broadly positive stance on the stock, with 50/50 buy/hold ratings.

Snowflake stock analysts consensus.

Buy price of Snowflake stock

Price action has been positive of late although we have seen the momentum just fade a little as it approached the April swing highs around $244. The beak of the trendline from the Dec ‘20, Feb ‘21 and Apr ‘21 peaks suggests bulls are taking charge again. MACD crossover also seen as bullish.

Price action of Snowflake shares.

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