Snowflake's AI Traction Ignored

And, Zoom's annual revenue forecast.

August 22, 2024

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Today is Thursday, August 22, 2024.

The Early Bird Index today is 72.19.

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Snowflake's AI Traction Ignored

Despite posting good financial earnings results on Wednesday, the data cloud company Snowflake (NYSE: SNOW) plunged 8.02% in after-hours trading.

Financials: Snowflake reported earnings of 18 cents per share in the past quarter and revenue of $868.8 million; both were better than expected.

Quote: “The quarter was hallmarked by innovation and product delivery, and great traction in the early stages of our new AI products." - CEO Sridhar Ramaswamy.

Outlook: Snowflake raised its product revenue guidance for the year but didn’t increase its margins. This angered some investors.

Stock Price: The stock is down 43% since its 2020 IPO.

Early Bird’s Nest Egg Gains: Other tech stocks are positive this year, but Snowflake's stock has faced significant challenges.

  • The unexpected retirement of the CEO in February created uncertainty among investors.

  • Despite the recent AI craze, Snowflake's growth rate has been decelerating in recent quarters.

  • Many businesses reduced their cloud spending this year.

Final Thoughts: Until cloud spending improves, Snowflake’s AI traction means little.

The Rising Demand for Whiskey: A Smart Investor’s Choice

Why are 250,000 Vinovest customers investing in whiskey?

In a word - consumption.

Global alcohol consumption is on the rise, with projections hitting new peaks by 2028. Whiskey, in particular, is experiencing significant growth, with the number of US craft distilleries quadrupling in the past decade. Younger generations are moving from beer to cocktails, boosting whiskey's popularity.

That’s not all.

Whiskey's tangible nature, market resilience, and Vinovest’s strategic approach make whiskey a smart addition to any diversified portfolio.

Notables

Notable Earnings Today: Intuit (Nasdaq: INTU), CAVA Group (NYSE: CAVA), Workday (Nasdaq: WDAY), Peloton Interactive (Nasdaq: PTON), Bill.com (NYSE: BILL), Advance Auto Parts (NYSE: AAP), BJ's Wholesale (NYSE: BJ), Ross Stores (Nasdaq: ROST), Bilibili (Nasdaq: BILI), Lancaster Colony (Nasdaq: LANC), Canadian Solar (Nasdaq: CSIQ), Red Robin Gourmet Burgers (Nasdaq: RRGB), Weibo (Nasdaq: WB), Viking Holdings (NYSE: VIK), Toronto-Dominion Bank (NYSE: TD), American Software (Nasdaq: AMSWA), Baidu (Nasdaq: BIDU), NetEase (Nasdaq: NTES), OSI Systems (Nasdaq: OSIS). 

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Eddis & Sons Cheesesteaks (Honeycomb), Each & Every Detail (Honeycomb).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), S&P Global Services PMI (9:45 a.m. ET), S&P Global US Manufacturing PMI (9:45 a.m. ET), S&P Global Composite PMI (10:00 a.m. ET), Existing Home Sales (10:00 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Zoom's Annual Revenue Forecast

Zoom Video Communications (Nasdaq: ZM) climbed 2.97% in after-hours trading on Wednesday after posting good financial earnings results.

Financials: Zoom reported earnings of $1.39 per share and revenue of $1.16 billion; both were better than expected.

Outlook: The company also raised its annual revenue forecast, expecting revenue between $4.63 billion and $4.64 billion.

Final Thoughts: Zoom, down 12% this year, is trying to turn things around.

Cardano Jumps Before Upgrade

The price of the cryptocurrency Cardano jumped 7% on Wednesday in anticipation of an upcoming upgrade called the Chang Hard Fork.

Final Thoughts: Cardano is up 40% in the last 12 months.

September to Remember: Fed Minutes Show a Cut ‘Likely’ to Come in September (New York Times)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.