Please ensure Javascript is enabled for purposes of website accessibility

Tanger Gets WSB Boost; Stock Markets Stay Choppy After Snowflake Reports

By Dan Caplinger - Mar 4, 2021 at 11:20AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investor anxiety continued on Wall Street.

Thursday morning once again showed how nervous investors seem to be about the current state of the stock market. After managing to post a brief gain near the open, major market benchmarks pushed lower once again, adding to weakness throughout the past couple of weeks in an echo of last year's coronavirus bear market. As of 10:30 a.m. EST, the Dow Jones Industrial Average (^DJI -1.56%) was down 35 points to 31,235. The S&P 500 (^GSPC -2.01%) fell 15 points to 3,804, and the Nasdaq Composite (^IXIC -2.98%) lost another 148 points to 12,850.

Among the gainers on the day was Tanger Factory Outlet Centers (SKT -1.83%), which got recognized by an increasingly prominent and influential group of investors. Meanwhile, Snowflake (SNOW) came out with its latest financial report, prompting volatile trading in the software-as-a-service stock as  shareholders tried to parse through recent happenings in the tech industry and the broader market.

Corner of a large strip mall with buildings going in two directions.

Image source: Getty Images.

Tanger moves higher

Tanger Factory Outlet Centers climbed almost 9% Thursday morning. That move added to gains from earlier this year that have caused shares of the retail real estate investment trust to double since the beginning of 2021.

Tanger has apparently caught the attention of traders on the Reddit forum WallStreetBets, with participants there pointing out that the REIT's current short interest of nearly 40% makes it the second-most popular short-sale candidate among bearish investors after video game retailer GameStop. Seeking to take advantage of institutions that are shorting the REIT's shares, WallStreetBets has a number of posts suggesting that the stock price could move several times higher from current levels.

Tanger's shares fell along with other retail real estate stocks when the COVID-19 pandemic hit. However, the open-air floor plans for its outlet centers have helped Tanger get its shoppers back more quickly than enclosed mall spaces. Recent results show traffic returning almost to normal conditions, and that could well move even higher if pent-up demand among shoppers gets released later this spring and summer.

The GameStop short squeeze back in late January also lifted Tanger in sympathy, but the recent move appears to be focused more squarely on the retail REIT's specific value proposition. With the stock still down by more than half from its highs in 2016, it'll be interesting to see if Tanger can keep rising.

Snowflake falls, rises

Elsewhere, shares of Snowflake were volatile, moving from sizable gains to significant losses before settling near unchanged as of 10:30 a.m. EST. The cloud data platform provider reported solid fourth-quarter earnings results, but investors still seem unclear whether the highly valued stock can maintain its huge gains since its recent IPO.

Snowflake's growth remains massive. Product revenue more than doubled in the fourth quarter, closing a fiscal year in which Snowflake's sales climbed 120%. The company now has more than 4,100 customers, up 73% year over year, and it nearly doubled the number of customers bringing in at least $1 million in annual sales to 77. Moreover, Snowflake is keeping those customers happy, leading to a net revenue retention rate of 168%, which signals that users are expanding their platform use to pay for more services over time.

Moreover, Snowflake sees its future as brighter than ever. Its guidance calls for revenue to top the $1 billion mark for the current 2022 fiscal year, with gains of between 81% and 84%.

Snowflake went public last September at $120 per share and immediately started trading at more than double that in its first day of trading after the IPO. Since then, the stock has been flat, but Snowflake's business is starting to catch up. For a company with as rich a valuation as Snowflake, that's not surprising, but the SaaS stock still looks like a solid long-term investment.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Tanger Factory Outlet Centers, Inc. Stock Quote
Tanger Factory Outlet Centers, Inc.
$14.48 (-1.83%) $0.27
Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
$30,946.99 (-1.56%) $-491.27
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
$3,821.55 (-2.01%) $-78.56
NASDAQ Composite Index (Price Return) Stock Quote
NASDAQ Composite Index (Price Return)
$11,181.54 (-2.98%) $-343.01
Intrawest Resorts Holdings, Inc. Stock Quote
Intrawest Resorts Holdings, Inc.

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.