Snowflake Stock Plunges 25%, Down $55 Per Share After CEO Exit, Mixed Q4

Snowflake Inc. (SNOW) experienced a significant drop in its stock price, falling over 25% in after-hours trading, with a decrease of $55 per share. The decline followed the company's mixed fourth-quarter results, which included strong bookings but compromised pricing, decelerating revenue growth, and subdued customer addition metrics. Additionally, Snowflake announced a change in leadership, with the new CEO lacking any enterprise software experience. Morgan Stanley downgraded the stock in response to these developments and the departure of CEO Frank Slootman, who sold over $200 million worth of SNOW stock in 2023 alone, through pre-planned sales, before his resignation. Concerns were raised about the company's valuation, previously trading at 243x forward earnings, indicating high expectations with little room for error.