Datadog (NASDAQ:DDOG) shares rose 5.7% in premarket trading following quarterly results from cloud data platform company Snowflake (NYSE:SNOW), which reported revenue and adjusted earnings above analyst expectations after Wednesday’s market close.
Datadog shares also moved higher during Wednesday’s after-hours session following Snowflake’s earnings release. Both companies operate within areas of the cloud infrastructure and enterprise software markets linked to artificial intelligence.
Snowflake Reports 35% Revenue Growth
Snowflake reported second-quarter revenue of $1.55 billion, an increase of 35% year over year, while product revenue rose 37% to $1.49 billion.
Remaining performance obligations increased 30% to $9.00 billion.
Adjusted earnings per share were $0.62, compared with the Wall Street consensus estimate of $0.45. Snowflake shares gained approximately 22% in extended trading on Wednesday after the company reported its results and guidance.
Datadog Shares Had Declined Over Previous Month
Datadog provides an AI-powered observability and security platform and operates within several of the same cloud and enterprise technology themes as Snowflake.
Datadog shares had declined approximately 22% over the previous month. According to the source material, the decline followed reduced expected future usage by a major AI customer.
Snowflake’s quarterly results also followed reports from other enterprise software companies and provided investors with additional data on spending within cloud and AI-related software markets.
Datadog Gains 5.7% Premarket
The broader US equity market showed limited movement, with the S&P 500 broadly unchanged and the Nasdaq modestly lower.
Datadog’s 5.7% premarket increase followed Snowflake’s results and the subsequent movement across enterprise software and AI-related cloud stocks.
Datadog stock price
Snowflake stock price
