Well after a frightening first half of the trading session, 10 out of 11 sectors roared back yesterday as the S&P 500 finished off the day with a +0.42% uptick, while the Dow and Nasdaq inched +01.4% and +0.57%, respectively.

(Source: Giphy) 

As mentioned in yesterday morning's article, the main blowback that had investors biting their nails came from all the cockeyed headlines about job growth revisions and the Fed’s minutes. However, while labor market revisions came in at 174,000 instead of 242,000 - the stats still indicate that the jobs market is strong… but not as strong as many hoped it would be. 

(Source: New York Times) 

So with that, the bulls with horns kept on buying as everything is aligning towards a nice little rate cut come September. But again, as mentioned many times over the past few days…

The only question now is: Are we looking at a cool quarter-point cut, or will the Fed go big with a half-point slash? With everyone and their grandma thinking the Fed is dragging its feet on rate cuts, a 50 basis point cut is at the top of a lot of wish lists. 

(Source: Giphy) 

Of course only time will tell if that actually comes into fruition or not, but as investors closed their work stations with some relief after yesterday's close, Snowflake and its investors experienced one hell of an aftermarket session.

In short, the company did all of us a solid with a grandslam Q2 earnings report as revenue and EPS body bagged estimates, while the company raised its guidance with an additional $2.5 billion buyback.

(Source: Benzinga) 

I mean can it get any better than that? Nope, especially considering that Snowflake's EPS trumped estimates by +13.46% with a cool $0.18 (analysts predicted $01.16) while revenue also topped estimates by +2.20% on $868.82 million (analysts forecasted $850.15 million).

In addition to this massive earnings win for the company, not only did revenue for the quarter catapult +32.89% year-over-year (while net income plunged -40.49% year-over-year), but Snowflake went ahead and raised its full year product expectations as well. The outlook? A nice looking $3.356 billion, indicating a +26% increase year-over-year. *Cue Wall Street foaming at the mouth* 

(Source: Giphy) 

However, what seemed like a champagne popping moment, everything went into the sh*tter due to a colossal F&$k up from none other than our homeboys at Benzinga. You see, despite Snowflake’s stock being down a blistering -28.59% YTD, it’s definitely gained some earnings momentum as the stock has bolted +8.92% over the past five days.

Meaning, the hope for investors was once these new earnings came out, it would only add fuel to the fire with more explosive uptrending ahead. Yet, as luck would have it, Benzinga accidentally reported an incorrect  -40 million revenue miss, sending investors in a panic as the stock tanked -10.83% after hours. 

(Source: Benzinga) 

Now of course, just five minutes after the posting, Benzinga analysts corrected the mistake, but by then the damage had already been done igniting a massive sell-off. Translation: The internet moves quick… too friggin quick. 

(Source: Benzinga) 

So unfortunately, this had Snowflake investors punching air all last evening as the company's grand slam earnings report was overshadowed by some poor bastard's fat fingering mistake. Which is why it will definitely be interesting to see how the stock responds throughout this morning’s trading session. 

(Source: Giphy) 

In the end, it sucks when things go your way, but outside forces completely screw the pooch for you. Yet, while Snowflake looks to regain some of its investor optimism, keep an eye on the stock this morning. 

The financials are definitely showing promise with analysts consensus price targets indicate a nice +73.41% upside for the stock from current levels… plus, with 14 out of 17 technical indicators flashing “Strong Buy”, this stock is worth taking note of. Translation: Put the stock on watchlist right friggin now. 

At the time of this writing Snowflake is down -10.91% from yesterday's close. 

Stocks.News does not hold any positions in companies mentioned in the article.