Why Snowflake, Datadog, and HubSpot Soared Today
Shares of Snowflake (NYSE: SNOW), Datadog (NASDAQ: DDOG), and HubSpot (NYSE: HUBS) soared Thursday, closing the session up 6.1%, 6.7%, and 8%, respectively.
There wasn't any company-specific news about any of them Thursday, although there had been earlier in the week. More likely, traders buying these enterprise software all-stars were responding to two things. First, the Commerce Department released first-quarter U.S. gross domestic product data showing a contraction of 1.4%. That was disappointing, but it may lead the Federal Reserve to temper its plans for interest rate hikes. Second, other large-cap tech companies have been reporting earnings this week. The preliminary read-through from those reports is that enterprise spending still remains strong, even if there are patches of consumer softness. That provides investors with good reason to expect positive news when these companies report next month.
Combine these factors with previously beaten-down share prices, and you have the recipe for Thursday's big gains.
Source Fool.com
