Why Jon Najarian Is Bullish On Snowflake

Jon Najarian is bullish on Snowflake Inc (NYSE: SNOW) after earnings, he said Thursday on CNBC’s “Fast Money: Halftime Report.”

What Happened: Snowflake reported an earnings loss of 70 cents, which missed the estimate for a loss of 16 cents. The company reported quarterly revenue of $228.9 million, which beat the estimate of $212.9 million and represented 110% growth year-over-year.

“Snowflake reported strong Q1 results with triple-digit growth in product revenue, reflecting strength in customer consumption. Remaining performance obligations showed a robust increase year-on-year, indicating strength in sales across the board,” said Snowflake CEO Frank Slootman.

Institutions are beginning to buy into the Snowflake story, Najarian told CNBC.

People were lined up against Tesla Inc (NASDAQ: TSLA) and Amazon.com, Inc. (NASDAQ: AMZN) when the companies weren’t profitable, only to chase the stocks for hundreds of points later on, he commented.

“I think that same sort of scenario could play out in a stock like Snowflake,” Najarian added.

Analyst Assessment: Multiple firms lowered price targets for Snowflake after its earnings report:

• Rosenblatt analyst Blair Abernethy maintained Snowflake with a Buy rating and lowered the price target from $285 to $270.
• Deutsche Bank analyst Patrick Colville maintained Snowflake with a Buy rating and lowered the price target from $300 to $248.
• Canaccord Genuity analyst David Hynes maintained Snowflake with a Hold rating and lowered the price target from $275 to $240.
• Loop Capital analyst Yun Kim maintained Snowflake with a Hold rating and lowered the price target from $270 to $250.
• DA Davidson analyst Andrew Nowinski maintained Snowflake with a Buy rating and lowered the price target from $300 to $275.

Related Link: Unusual Options Activity Insight: Snowflake

SNOW Price Action: Snowflake traded as high as $429 and as low as $184.71 since its IPO on Sept. 17.

At last check Thursday, the stock was up 2.31% at $241.03.

(Photo by Valdemaras D. on Unsplash)