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I just wrote about cybersecurity firm CrowdStrike (CRWD) which reports earnings after the close today as a test of early-stage tech growth. Perhaps an even purer text is data analytics firm Snowflake (SNOW) which reports Wednesday afternoon. Last year SNOW was a darling of investors with the stock reaching ~$400/share but this year it has been hit by the same forces that have hit all early-stage growth companies. While CRWD has actual profits SNOW does not. With $45 billion market cap they are guiding current-year revenue to ~$2 billion. That’s more than 20x revenue – quite an expensive multiple.

From everything, I understand the software is great and with data accumulating at a massive pace the use for SNOW’s platform is likely to continue to grow. The question for me is whether the 65% hit to the stock over the last year is enough to bring investors back in if the earnings report is decent. If stocks like CRWD and SNOW – poster children for exactly the kind of stocks that have not worked this year – are washed out at the moment I think that’s worth knowing.

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