Why Snowflake Stock Was Surging This Week
Week to date, shares of Snowflake (NYSE: SNOW) were up 28% as of 9:50 a.m. ET on Friday, according to data provided by S&P Global Market Intelligence. Since the beginning of the year, the stock has fallen 42% along with the broader market over concerns about the economy and how much longer businesses will continue spending on cloud services at a rapid clip.
Snowflake squelched those concerns on Wednesday, when it reported stable year-over-year revenue growth of 83% -- only a 1-percentage-point deceleration from the previous quarter.
Management had previously guided for second-quarter revenue growth of 71% to 73% year over year. It easily outpaced that expectation. With consumer spending showing signs of succumbing to the gravitational pull of inflation during the quarter, businesses are still placing cloud services as a top priority, which is benefiting Snowflake.
Source Fool.com
