Snowflake Inc. (NYSE:SNOW) just put up one for the record books. The data cloud giant rocketed 87.3% in May — from an April 30 close of $136.47 to a May 29 finish of $255.55 — its best single-month performance in company history.
- SNOW stock is moving. See the chart and price action here.
That kind of move doesn’t happen quietly. It happens with a short squeeze attached.
The ignition point was earnings. On May 28, SNOW blasted 36.5% higher in a single session after reporting results that vaporized every bearish thesis bears had built around slowing enterprise software spend.
The stock went from $175.26 to $239.20 overnight. Short sellers who had been betting on continued SaaS malaise were suddenly staring at a margin call.
Cover Your SaaS
That’s the short-covering dynamic now playing out across the entire software sector.
When a heavily shorted, high-multiple name like SNOW goes vertical, it forces a reassessment across the whole cohort.
Hedge funds that were running paired trades, long AI infrastructure and short legacy SaaS, got hit on both legs simultaneously. Covering accelerates, and what started as an earnings reaction turns into a sector-wide melt-up.
The contagion is visible in real time on Monday morning. Salesforce (NYSE:CRM) is surging 9.86% — reclaiming territory it abandoned during months of AI-or-bust repositioning.
Adobe (NASDAQ:ADBE) is pushing higher by 4.72%, clinging to $271.44 despite sitting well off its 52-week high.
Atlassian (NASDAQ:TEAM) is spiking 6.87% to $115.00, a name that had been brutalized as developer tool spending tightened.
The Narrative Flip
For most of 2025, the market consensus was binary: investors owned AI infrastructure (semiconductors, cloud hyperscalers, power) or investors got out of SaaS.
The worry was that AI would commoditize the very tools enterprise software companies had spent years building moats around.
Snowflake’s blow-out earnings, driven by surging AI workloads on its data platform, obliterated that either/or framing.
AI isn’t killing data warehousing. It’s eating more of it. And the rest of software is starting to catch the bid.
Photo: Funtap / Shutterstock
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