Snowflake Inc (NYSE:SNOW) shares surged over 10% on Thursday, riding a wave of optimism in cloud and cybersecurity sectors after strong first-quarter results from Datadog and Fortinet.
Datadog Drives Momentum
Datadog Inc (NASDAQ:DDOG) kicked off the rally with impressive Q1 figures. Revenue hit $1.006 billion, a 32% increase year-over-year that exceeded analyst expectations. Adjusted earnings also surpassed forecasts. The company expanded its large customer base and saw rising adoption of AI-powered platform features.
Datadog bolstered investor confidence by providing second-quarter guidance above consensus estimates and lifting its full-year 2026 revenue and earnings outlook.
Fortinet Adds Fuel
Fortinet Inc (NASDAQ:FTNT) followed with robust results, reporting adjusted earnings of 82 cents per share—well ahead of projections—and $1.85 billion in revenue, up 20% from the prior year. Billings rose sharply, driven by the integration of networking and security amid a complex threat landscape intensified by AI.
Management raised full-year revenue and earnings guidance, underscoring sustained demand through 2026.
Snowflake Benefits from Sector Tailwinds
Although not purely a cybersecurity firm, Snowflake gains from renewed faith in cloud spending and AI-driven data workloads. Enterprise demand for cloud, security, and AI tools proves resilient amid economic uncertainties.
Technical Analysis
Snowflake’s stock climbed 10.35% to $154.21. It trades 8.9% above its 20-day simple moving average (SMA) of $141.49, signaling short-term strength. However, it lingers 1.6% below the 50-day SMA ($156.63), and further from the 100-day ($179.70) and 200-day ($206.02) SMAs.
The MACD indicator stays above its signal line with a positive histogram, indicating easing downside pressure and potential rebound continuation. Yet, the 20-day SMA trails the 50-day, and a February death cross (50-day below 200-day) persists, highlighting longer-term challenges.
Key Levels to Watch
- Support: $145.00 – Near the 20-day SMA and recent buyer defense zone.
- Resistance: $156.50 – Aligns with the 50-day SMA, a typical stall point for rallies.
