Snowflake (SNOW) stock spent the day moving lower on Tuesday as the stock closed 5% lower.
With little to no negative news on Snowflake, the quick drop in share value points to a high likelihood that short-term traders are simply taking profits.
Snowflake Inc. is a cloud-based data platform that helps businesses store, analyze, and share data efficiently.
The company’s platform operates on major cloud providers and supports AI-driven applications for more than 10,600 customers. Snowflake's tools help organizations to make better decisions by providing secure, real-time access to data for analytics.
The company’s stock is trading more than 40% higher over the last month, including today’s 5% decline.
Shares surged higher following the company’s latest earnings report – after the close on November 20 – which was better than the market expected. The company also adjusted its outlook higher.
Three Wall Street analysts upgraded their outlook for Snowflake shares following the earnings results, adding more bullish interest to the stock.
Snowflake shares remain near overbought readings of its RSI indicator. This suggests that the stock is still likely to see measured selling over the next few weeks. Following that, investors are likely to rush in to buy the stock at prices lower than its recent highs.
Shares of Snowflake initiated a new long-term bull market trend in November and have a price target of $200.
