Why Snowflake Stock Dropped 12% Last Month

Shares of data storage and analytics company Snowflake (NYSE: SNOW) dropped by 12.4% during August, according to data provided by S&P Global Market Intelligence. The stock got crushed after the company reported results for its fiscal 2025 second quarter on Aug. 21 -- but the drop in price confused many investors.Here's why the stock's drop was confusing for some: In the quarter, Snowflake generated product revenue of $829 million, which was way ahead of the $810 million that had been the top of management's guidance range. Moreover, management subsequently raised its full-year revenue guidance. In other words, business seems to be better than expected.However, the profit trends look problematic. The company expects its adjusted gross profit margin to drop from 78% in fiscal 2024 to 75% in its fiscal 2025, and its adjusted operating margin is expected to fall from 8% to 3%.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool