BTIG analyst Gray Powell downgraded Snowflake to Neutral from Buy without a price target. The analyst says his most recent field checks on Snowflake “downticked,” which indicates potential for product revenue growth to slow in coming quarters. Sequential trends at the hyperscale cloud infrastructure-as-a-service providers decelerated in Q2, which is a negative read-through to Snowflake, Powell tells investors in a research note. More importantly, in recent customer checks, spending intentions with Snowflake remained solid, but feedback was “not nearly as good as 6 – 12 months ago as customers are becoming increasingly concerned about a weakening economic environment,” adds the analyst. Powell now sees a balanced risk/reward for Snowflake shares.
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