Here’s why Snowflake stock price gained despite a bigger-than-expected Q4 loss

Shares of Snowflake (NYSE: SNOW) soared 1.8% in pre-market trading hours on Thursday despite reporting a bigger-than-expected loss for the fourth quarter that ended January 2021.

Fundamental analysis: Dual-class structure removed

Snowflake reported a Q4 loss of $0.70 per share, which is much worse than the $0.43 per share expected from the market analysts. Revenue for the quarter was reported at $190.5 million to top the $178.5 million analyst consensus. 

The company said it expects to record a product revenue between $1.00 billion and $1.02 billion, a guidance that is in line with the analyst consensus of $1.01 billion. Revenue is projected between $195 million and $200 million, with the midpoint of $197.5 million better than the $196.3 million expected from Wall Street.

Shares were boosted by the fact the data analytics company has removed its dual-class share structure.

Technical analysis: Supporting trend line broken

Snowflake stock price closed the day 8.7% lower yesterday as it threatens to break below $242 for the first time since November last year. This way, shares erased gains from earlier in this week and extended the selloff that has started in February. 

An acceleration in the move lower came after the price action broke the supporting trend line around the $280 mark. The November lows near $230 are offering support in the short-term, while the all-time low for the stock is located at $208.55. 

Summary

Snowflake stock price has gained moderately today after the company said has removed its dual-class share structure.