Snowflake Inc. (NYSE:SNOW) shares are trading higher Thursday in sympathy with Salesforce, after the enterprise software giant posted stronger-than-expected second-quarter results and raised its full-year outlook.
- Snowflake shares are climbing with conviction. What’s behind SNOW gains?
Salesforce Beats Estimates and Lifts Full-Year Guidance
Salesforce Inc.’s (NYSE:CRM) top line came in at $11.35 billion for the quarter, clearing the $11.32 billion Wall Street had penciled in and marking an 11% climb from the year-ago period. Profitability told an even bigger story, with adjusted earnings landing at $5.90 a share against a consensus call of just $3.27.
Turning to guidance, Salesforce pointed to third-quarter revenue landing somewhere between $11.42 billion and $11.50 billion, edging out the Street’s $11.41 billion projection, alongside adjusted profit of $3.42 to $3.44 per share, ahead of the $3.37 consensus.
Management also nudged its full fiscal-year targets higher across the board, moving the revenue range up to $46.1 billion to $46.4 billion from an earlier $45.9 billion to $46.2 billion window, while adjusted earnings guidance jumped to a new $16.67 to $16.71 range from the prior $14.06 to $14.12 outlook.
Salesforce’s strong quarter is spilling over into Snowflake because the two companies sit in the same broad category of enterprise software providers that businesses rely on to manage data and run operations, and investors often treat news from one as a signal about demand across the group. Salesforce’s beat, raised guidance and AI-driven growth all point to healthy enterprise technology spending, a backdrop that also benefits Snowflake’s own data and AI-related business.
Snowflake’s Chart Shows a Strong, Extended Uptrend
Beyond the Salesforce connection, Snowflake’s own technical setup is reinforcing today’s strength. Shares are trading above their 20-day, 50-day, 100-day and 200-day moving averages, a stack of rising trend lines reinforced by a golden cross that formed in July, keeping the stock’s longer-term trend pointed higher.
Momentum is more mixed in the near term, with the MACD line below its signal line and a negative histogram, suggesting the recent upward push is losing some steam even though the broader trend remains intact. Traders are watching $342 as resistance, essentially the stock’s 52-week high near $341.95, a level that often takes more than one attempt to clear.
Snowflake Is Leading its Own Sector Today
That technical strength is also showing up relative to Snowflake’s peers. Shares are up 5.12% versus a 2.58% gain for the Technology Select Sector SPDR Fund, putting Snowflake more than 2.5 percentage points ahead of its own sector, which itself ranks as the best-performing sector today.
Technology has climbed 9.62% over the past 30 days but remains down 1.82% over the past 90, suggesting a recent rebound within a choppier longer-term stretch. With shares trading well above both their 50-day and 200-day averages, Snowflake looks better positioned technically than many of its slower-moving peers if the sector’s short-term strength continues.
SNOW Shares Are Rising
SNOW Price Action: Snowflake shares were up 5.08% at $331.39 at the time of publication on Thursday. The stock is trading near its 52-week high of $341.94, according to Benzinga Pro.
Image: Michael-Vi/Shutterstock
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