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🗞️ Snowflake Stuns Wall Street
PLUS: Why is Tesla falling?
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Market Performance
S&P 500: 6,501.86 ⬆️ 0.32%
Nasdaq: 21,705.16 ⬆️ 0.53%
Dow Jones: 45,636.90 ⬆️ 0.16%
Snowflake Soars on AI Database Demand
Snowflake (SNOW) stock jumped about 20% on Thursday, riding a wave of demand for the firm's artificial intelligence database products as companies race to modernize their data infrastructure and simplify AI adoption.
The cloud-based data warehousing company reported quarterly product revenue of $1.09 billion, up 32% year-over-year, with remaining performance obligations totaling $6.9 billion.
CEO Sridhar Ramaswamy highlighted that more than 6,100 accounts are using Snowflake's AI weekly, positioning the company as a key beneficiary of the AI and cloud migration trend.
Snowflake raised its annual product revenue forecast to $4.40 billion, up from the prior estimate of $4.33 billion and exceeding analysts' expectations.
Snowflake stock is a growth stock and has a Ziggma score of 73. However, it ranks in the bottom-half percentile in terms of valuation and profitability .
Our Takeaway
Snowflake's strong performance validates the thesis that AI infrastructure companies beyond just chipmakers are capturing significant value.
With a net revenue retention rate of 125% and growing enterprise adoption, Snowflake is well-positioned to benefit from the ongoing AI transformation across industries.
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Market Overview
The S&P 500 scored another record close on Thursday as traders digested Nvidia's mixed earnings results.
While Nvidia's revenue beat expectations with 56% growth, data center revenue came in slightly below estimates for the second straight quarter, causing initial concerns among investors.
The broad market largely viewed Nvidia's numbers as affirming the AI boom, despite the chipmaker's shares closing down 0.8%.
Supporting market sentiment, the Commerce Department reported that GDP grew at a 3.3% annualized rate in the second quarter, better than the initial estimate of 3.0%.
This robust economic data helped offset concerns about the Federal Reserve's independence after President Trump fired Fed Governor Lisa Cook, who filed a lawsuit on Thursday challenging the move. A judge has set a hearing for Friday on the matter.
The market's next test will come on Friday with the release of the personal consumption expenditures price index for July, with economists forecasting a 0.2% monthly rise and a 2.6% annual increase.
Stock Moves Deciphered 📈
Fair Isaac Corporation (FICO)
Stock Performance: +6.13%
The stock gained after announcing the retirement of its Scores President. The CEO will take direct responsibility for the key division, a move investors viewed positively, signaling strong leadership and strategic focus on the core scoring business.
The Cooper Companies (COO)
Stock Performance: -12.85%
The stock declined after its Q3 earnings report failed to impress investors.
The CooperVision division's organic growth was the lowest since the Great Recession, and the company missed its own revenue expectations, raising concerns about future performance.
Hormel Foods Corporation (HRL)
Stock Performance: -13.09%
The stock declined after issuing a downbeat quarterly profit forecast. The company expects to earn between $0.38 and $0.40 per share in the current quarter, below the $0.49 that analysts expected, signaling weaker future earnings.
Headlines You Can't Miss
📈 Alphabet Class A shares hit all-time highs back to its IPO on August 19, 2004, among 27 S&P 500 stocks reaching new 52-week highs.
🎪 Live Nation Entertainment traded at all-time high levels back to its IPO in December 2005, benefiting from strong entertainment demand.
🚢 Carnival Corporation reached levels not seen since March 2020, signaling recovery in the cruise industry post-pandemic.
🚗 Ford Motor Company hit levels not seen since July 2024, with the automotive sector showing renewed strength.
💄 Ulta Beauty touched levels not seen since March 2024, indicating resilience in the beauty retail sector.
🏦 Goldman Sachs reached all-time highs dating back to its IPO in May 1999, riding financial sector momentum.
⚖️ Fed Governor Lisa Cook filed a lawsuit against President Trump after being fired, challenging the unprecedented move in federal court.
📊 GDP growth was revised higher to 3.3% annualized in Q2, beating initial estimates and economist forecasts, showing economic resilience.
Trending Stocks
Nvidia (NVDA) ⬇️ 0.8%
Nvidia reported second-quarter earnings that beat Wall Street estimates with 56% revenue growth to $46.74 billion.
However, data center revenue of $41.1 billion came in slightly below the StreetAccount estimate of $41.34 billion for the second straight quarter. The company guided overall revenue for the current quarter at $54 billion, only slightly above expectations.
A key concern was that the revenue guidance doesn't assume any H20 chip sales to China. Several semiconductor analysts became more bullish despite the initial disappointment, with JPMorgan, Citi, and Bernstein raising price targets.
Tesla (TSLA) ⬇️ 1%
Tesla stock fell as European sales data showed continued weakness, with new car registrations totaling 8,837 in July, marking a 40% year-on-year decline.
This represents the company's seventh consecutive month of declines in Europe, despite overall battery electric vehicle sales rising in the region.
Chinese rival BYD, meanwhile, recorded 13,503 new registrations in July, a 225% increase from the same period last year, highlighting the competitive pressure Tesla faces in the European market.
Dollar General (DG) ⬆️ 1%
Dollar General advanced after reporting second-quarter results that beat analyst expectations.
The discount retailer earned $1.86 per share, well above the $1.57 consensus estimate, with revenue of $10.73 billion, which topped the $10.69 billion forecast.
The company also raised its full-year guidance, signaling confidence in continued performance.
What’s Next?
Key Earnings to Watch 👇
Dell (DELL) is forecast to report revenue of $27 billion vs. $24.37 billion last year. Earnings per share are expected to grow from $2.15 to $2.52.
Marvell Technology (MRVL) is forecast to report revenue of $2.02 billion vs. $1.52 billion last year. Earnings per share are expected to grow from $0.43 to $0.72.
Autodesk (ADSK) is forecast to report revenue of $1.81 billion vs. $1.57 billion last year. Earnings per share are expected to grow from $2.17 to $2.49.
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Source: App Economy Insights
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