Snowflake stock swings higher as investors digest earnings

Yahoo Finance Live anchors discuss the rise in stock for Snowflake.

Video Transcript

[AUDIO LOGO]

JULIE HYMAN: And Snowflake is on the other side of that, right?

BRAD SMITH: Yes.

JULIE HYMAN: Like as we're talking about these companies that are different-- and yes, Snowflake is in a different part of the business, right? They're more of just a cloud business and helping companies organize that in the cloud. But their customers, there's got to be some overlap, right--

BRAD SMITH: Yeah.

JULIE HYMAN: --in their customers and who's spending on what. Snowflake going in the other direction. We're going to take that up again in just a second. But what we see here is the opening bell on this Thursday morning after the big, big rally that we saw yesterday. We'll see if there's any kind of giveback on that today. We were seeing a little more of a tepid increase in the futures here this morning. So we'll have to keep an eye on that. I just mentioned Snowflake. I just want to-- before we get to Brad over at the touch, just to mention what we're seeing in Snowflake shares, the shares are down sharply. That company giving what many investors saw as a disappointing forecast.

The company says product revenue is going to be as much as $540 million in the fourth quarter. That is lower than analysts had been anticipating. The company charges people based on how much they use its products. And that model, according to some analysts, was not necessarily fruitful. The stock was down more than 10%.

Brad, it's up 3% now. I'm not quite sure what happened with Snowflake, but I guess people are taking another look and not seeing it quite as negatively as they were after the numbers came out after the bell.

BRAD SMITH: Yeah, about 7,292 total customers they reported this quarter-- net revenue retention rate of 165% and then 287 customers, with that trailing 12-month product revenue greater than a million dollars. Perhaps investors taking another look at this one, to your point, Julie, trying to figure out exactly how to evaluate Snowflake, but we'll--