Snowflake Shares Are Trading Higher: What's Going On

Zinger Key Points

ServiceNow's strong Q2 earnings have positively influenced market sentiment, benefiting similar cloud computing stocks like Snowflake.
The robust performance of ServiceNow suggests a positive outlook for the cloud computing sector.
Our government trade tracker caught Pelosi’s 169% AI winner. Discover how to track all 535 Congress member stock trades today.

Snowflake Inc. SNOW shares are moving higher Thursday, bouncing back after falling amid overall tech weakness on Wednesday. The stock may be benefiting from strong quarterly results from ServiceNow Inc. NOW.

What Happened With NOW: ServiceNow reported second-quarter revenue of $2.627 billion, surpassing the consensus estimate of $2.607 billion. This beat in earnings has driven a positive sentiment in the market, causing ServiceNow shares to rise by 14.7% to $837.96 at the time of publication Thursday.

Analysts cite robust U.S. federal business and increasing AI software adoption as key drivers of this performance.

Why It Matters: Snowflake and ServiceNow are both significant players in the cloud computing sector. ServiceNow’s strong performance may indicate a positive trend for similar companies, suggesting that Snowflake could also experience favorable results in its upcoming earnings report.

Price Action: Snowflake shares were up by 4.20% at $130.90 at the time of writing, according to Benzinga Pro.