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Snowflake (NYSE:SNOW) shares put in a disappointing performance Monday, falling more than 9%, as enterprise and cloud-software companies slumped in a broad tech-sector decline.
There wasn’t much in the way of direct bad news involving Snowflake (SNOW), which provides businesses with data-management and analysis software. But, with the major stock market gauges declining for a fourth-straight session amid more concerns about the Federal Reserve’s position on interest rates, ongoing fears about inflation not letting up, and the economy in general, tech stocks suffered bruising all-around performance to start the week.
Five9 (FIVN) didn’t help the situation, as the cloud-based call-service technology company’s shares cratered by more than 25% after Chief Executive Rowan Trollope stepped down. Five9 (FIVN) also released preliminary third-quarter earnings and sales results that were better than expected.
Other cloud and enterprise software stocks such as Twilio (TWLO) and Ring Central (RNG) also staggered on Monday. Chip stocks took a beating, in the wake of new U.S. government rules on selling certain semiconductor technology to China that could potentially be used by the Chinese military.
Before the market opened, Citi analyst Vivek Arya said in a research report that Intel (INTC), Nvidia (NVDA) and Lam Research are among the semiconductor companies most at risk of having their sales affected by the new U.S. regulations.
For its part, Wall Street analysts and Seeking Alpha authors both have a consensus buy rating on Snowflake’s (SNOW) stock. Meanwhile, Seeking Alpha’s quant system, which regularly outpeforms the market, has Snowflake (SNOW) rated at hold.
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