What Can Stop Snowflake's Shares From Melting?

Cloud database software company Snowflake continues to struggle to lure investors, despite progress in revenue growth and earnings.

The company reported second-quarter revenue of $868.823 million, above the consensus estimate of $849.704 million. The company reported adjusted earnings of 18 cents per share, beating analyst predictions of 16 cents per share.

Yet Snowflake’s shares fell 10% in early-morning trading, representing a loss of investor confidence in the company after several rocky quarters. That record, and the departure of former CEO Frank Slootman in February, have raised doubts about the company’s future.

There’s also the elephant in the room: Snowflake rival Databricks is known to be gearing up for a gigantic initial public offering (IPO) and has recently made aggressive moves to cut into Snowflake’s turf with acquisitions and new products.

What Happened in the SNOW Quarter?