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Why did Snowflake stock drop today? Blame volume, rising yields, weak market

Snowflake (NYSE:SNOW) shares fell more than 9% to trade at $135.80 in late-day trading on Monday as a result of heavier than normal volume and rising bond yields.

More than 7.8M shares changed hands shortly before 3:30 p.m. EST, nearly 20% larger than the average daily volume of just over 6.2M shares.

In addition to the heavy volume, the broader stock market fell sharply, with tech stocks seeing the brunt of the selling as both the U.S. dollar and bond yields rose sharply.

Last week, Snowflake (SNOW) reported third-quarter results that topped expectations, but its outlook for the fourth quarter fell short of Wall Street estimates.

Looking ahead, Snowflake (SNOW) said it expects product revenue to be between $535M and $540M, a growth rate of 49% to 50% year-over-year, or well below the 67% the company saw in the third quarter.

Snowflake (SNOW) also said it expects adjusted operating margins to be 1% in the upcoming period.

Full-year revenue is forecast to be between $1.919B and $1.924B, compared to estimates of $1.92B. The company raised its expectations for adjusted operating margins for the full year, however, as it now expects the metric to be 3%, up from a prior view of 2%.

Last month, investment firm Bernstein started coverage on Snowflake (SNOW), noting that even though the company has seen strong growth, it may be difficult to take away business from the entrenched cloud competitors.