Talking up the glowing prospects for artificial intelligence is usually a surefire way for companies to get investors excited. But sometimes it doesn’t.
Guggenheim analysts led by John DiFucci noted that even though the guidance said subscriptions could grow 10% in the 2025 fiscal year, it “no longer looks like a low bar.” They added that “despite management enthusiasm around the recently rebranded Einstein 1 platform , current guidance does not factor in material contribution” from that for 2025. They maintained a neutral rating on the shares.
Things looked even worse for Snowflake. The provider of a platform for big data storage unexpectedly announced the departure of Chief Executive Frank Slootman, as well as disappointing on guidance for the coming year. The stock plunged 22% in the premarket to $178.70. Coming into the session, it was up 70% over the past 12 months.