Snowflake (NYSE: SNOW) is surging 20% Thursday morning after the cloud data company delivered better-than-expected second-quarter results and lifted its full-year outlook. Adjusted earnings came in at 62 cents per share, topping the 45 cents per share estimate, while revenue jumped 35% year over year to $1.55 billion.
The strong results have sparked a wave of analyst optimism, with at least 26 firms raising their price targets. Morgan Stanley, came in the hottest, lifting its target to $470 from $300.
Snowflake stock is pacing for its strongest single-session gain since a 36.5% post-earnings melt up from May. The shares are already up 69% year to date. Still, traders may want to watch the stock's 14-day Relative Strength Index (RSI), which was last sitting at 70 and on the cusp of "overbought" territory.
There's short squeeze potential to monitor. Roughly 18.81 million shares are sold short, representing 5.6% of SNOW's available float. At the stock's average daily trading volume, it would take short sellers nearly three days to cover their positions.
SNOW also carries a Schaeffer's Volatility Scorecard (SVS) sits at 92 out of 100, indicating the stock has tended to exceed option traders' volatility expectations during the past year.
