Snowflake Falls Following Ambitious Investor Day Goal

Snowflake (NYSE:SNOW) stock fell almost 4% premarket Friday a day after providing investors with an ambitious long term goal.

At its Investor Day on Thursday, the company laid its plan to reach $10 billion in product revenue by the end of 2028 (FY29), a sharp rise from fiscal 2021’s $554 million, with a long-term operating margin target of 10%.

“The new product revenue guide underscores management’s confidence in its ability to continue to grow at elevated rates for many years. In addition, it’s important to note that this long-term guide doesn’t even include any of this week’s product announcements,” Mizuho ‘s (NYSE:MFG) Gregg Moskowitz said in a note, according to StreetInsider.

Investors may have wanted even more even, Moskowitz added, as he remains bullish on the stock.

That said, the stock is up 30% in the last month, and investors may have wanted to bank some profits.

Oppenheimer (NYSE:OPY) analyst Ittai Kidron is also positive on the company’s platform direction and growth prospects. He has an outperform rating, with a price target of $320 per share, a premium of almost 30% to Thursday’s closing price of $248.80.