Earnings Quick Hits: Snowflake, Peloton and Nvidia

Earnings season is over, and companies who reported this week capped off the quarter with a bang (good and bad). The future of these three companies — once strong performers during COVID — couldn’t look more different…

Snowflake (NYSE:SNOW) — the cloud computing company — jumped 23% yesterday after releasing a strong earnings report.

• Per Canaccord Genuity, Snowflake is a “category-leading company that’s growing far faster than almost anything else in software and doing so nicely profitably with improving cash margins” (CNBC).
• Despite falling 42% this year, $SNOW is still looking expensive at a 20x price-to-sales multiple, but it makes up for it with an 83% sales growth (63% expected in the next report).

Peloton (NASDAQ:PTON) jumped 20% on Wednesday after announcing a partnership to sell on Amazon. The very next day, $PTON fell 18% after releasing earnings.

• Peloton reported a massive $1.2B loss, with sales falling 28% from last year’s same quarter. Falling interest, supply chain challenges, and a slowing economy were too much for Peloton to handle.
• In early August, Peloton disclosed a turnaround plan in an internal memo to employees, highlighting job cuts, price increases and other cost-cutting measures.

Nvidia (NASDAQ:NVDA) — the semiconductor giant — rose 4% despite reporting earnings that showed revenue and earnings missing forecasts by a wide margin.

• Nvidia isn’t alone in sharing the pain with the entire semiconductor industry, having taken a hit with PC and gaming sales slowing in 2022.
• Gaming made up 30% of Nvidia’s sales last quarter, but luckily, its data center business grew 61% — becoming 57% of its business.