In the week that Snowflake (SNOW) posted quarterly results, shares jumped by over 20%. This is a price not seen since February 2024. Investors should consider trading the volatility in SNOW stock.
Snowflake posted a 31.2% Y/Y growth in revenue, to $1.14 billion in the second quarter. It expects Q3 revenue to grow by 25%-26%. The firm has an AI-gen platform that empowers customers to develop agentic applications on Cortex AISQL.
AI transformations of workflow would maximize the customer’s data usage. While the U.S. is growing, Europe is still in the developmental phase. Patient investors may hold SNOW stock, where growth in Europe would play out over several years.
In the cybersecurity sector, trade CrowdStrike (CRWD). The stock looked like it would break a downtrend that started in July. It traded in a +/- $50 range after posting results. In Q2, the firm posted a $0.93 EPS and revenue of $1.17 billion (+21.4% Y/Y).
CrowdStrike believes annual recurring revenue will grow by 40% in the second half of this year. Sales are rising thanks to partner rebates and strong demand for professional services. Although rebates might offer a temporary boost in growth, the company needs customers to renew their contracts.
CrowdStrike may upsell module purchases like Falcon Flex and customer care packages.
