Snowflake (SNOW) stock plummeted 5.01% during intraday trading on Friday, following news that the company's Chief Financial Officer, Michael Scarpelli, sold common stock worth $48.96 million earlier in the week. The significant insider sale has raised concerns among investors about the company's near-term prospects.

The large stock disposal by a key executive often signals a lack of confidence in the company's future performance or valuation. This move comes at a time when Snowflake, like many tech companies, faces challenges in the current economic environment.

While Snowflake's financial position remains strong with $4.64 billion in cash and $2.37 billion in net cash, investors seem to be reacting to the CFO's decision to offload a substantial amount of shares. The company has been growing its revenue, reporting $3.6 billion over the past 12 months, a 29% increase. However, it has yet to report positive earnings before interest and tax, which may be contributing to market sensitivity.