Snowflake shares were sent tumbling Friday morning as fears of growth slowing down has shaken investors up. A report from Cleveland Research states that Snowflake’s new business signings for July’s quarter had slowed down compared to April’s quarter, a sign they claim will be a potential trigger in a cooldown of growth. In addition, they noted competitive pressure could be on the rise as rival software, such as Google’s BigQuery, will be a potential threat for the future.
However, a counter note from Piper Sander analyst Brent Bracelin helped shares pare some losses. He noted in his research that “fears of moderating growth metrics on elongating sales cycles,” appear to have been overdone. He added that the growth slowdown investors were worrying about seems to be overblown as the previous projection of 218% growth was probably somewhere near 144% instead. While shares did pare losses, SNOW still traded down 4.57% on Friday on 13.192 million shares of volume.