Why Datadog, Snowflake, and Other Cloud Stocks Rallied on Friday
One of the hallmarks of the recent economic downturn was a pause in the digital transformation, marked by a dramatic pullback in cloud spending, as companies turned to cloud optimization in an effort to more efficiently use their existing services. The financial results released by one company today suggest that customers are beginning to pile back into cloud services, which could mark the end of a historic dry spell.
As of 2:56 p.m. ET on Friday, (NASDAQ: DDOG) stock had risen 3.6%, Snowflake (NYSE: SNOW) had climbed 4.9%, and MongoDB (NASDAQ: MDB) had jumped 6.5%.
A check of all the usual sources -- regulatory filings, earnings results, and changes to analysts' price targets -- turned up nothing in the way of company-specific news to explain the moves. Rather, it was the robust results of a rival cloud provider that helped propel them higher.
Source Fool.com
