Datadog Inc. (NASDAQ:DDOG) shares are trading higher Thursday on possible continued momentum after strong earnings from Snowflake Inc. (NYSE:SNOW) on Wednesday.

Snowflake’s Results Drive AI Optimism

Snowflake reported a second-quarter double beat, with revenue of $1.55 billion versus estimates of $1.48 billion and adjusted earnings per share of 62 cents versus estimates of 45 cents. Product revenue grew 37% year-over-year, and remaining performance obligations rose 30% year-over-year to $9 billion.

“AI continues to compound our advantages, creating a flywheel effect across the business,” said Sridhar Ramaswamy, CEO of Snowflake.

Snowflake shares soared more than 22% following the report, pulling Datadog higher in sympathy. Datadog offers an AI-powered observability and security platform and often moves alongside Snowflake given the overlap in enterprise AI infrastructure demand.

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Datadog Shares Rise

DDOG Price Action: At the time of publication, Datadog shares are trading 5.15% higher at $220.00, according to data from Benzinga Pro.

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