Snowflake Inc (NYSE:SNOW) shares are rising in Tuesday’s after-hours session in sympathy with peer MongoDB Inc (NASDAQ:MDB) stock, which surged after reporting better-than-expected financial results for the second quarter.
SNOW stock is showing exceptional strength. See the trading setup here.
What Happened With MDB: MongoDB beat analyst estimates on the top and bottom lines in the second quarter, reporting revenue of $591.4 million versus estimates of $552.46 million, and adjusted earnings per share of $1 versus estimates of 66 cents.
MongoDB said it has added over 5,000 customers year-to-date. The company also issued strong guidance for the third quarter and raised its full-year outlook above estimates.
“Many of our recently added customers are building AI applications, underscoring how our value proposition is resonating in the AI era and why MongoDB is emerging as a key component of the AI infrastructure stack,” the company said.
MongoDB shares were up 28.10% in after-hours, trading at $274.58 at the time of publication on Tuesday.
Why It Matters For SNOW: MongoDB and Snowflake are both data platform companies. Snowflake refers to itself as the “AI Data Cloud company.” Investors appear to be anticipating upbeat earnings from Snowflake following MongoDB’s strong results.
Snowflake is due to report second-quarter results after the market close on Wednesday.
Analysts expect the company to report earnings of 27 cents per share and revenue of $1.09 billion, according to estimates from Benzinga Pro.
Snowflake has beat analyst estimates on the top and bottom lines in four straight quarters heading into Wednesday’s report.
Citizens JMP Securities analyst Patrick Walravens reiterated Snowflake with a Market Outperform rating and price target of $260 on Tuesday, citing potential for the company to deliver an upside surprise on product revenue growth in the quarter.
SNOW Price Action: Snowflake shares were up 3.83% in after-hours, trading at $201.79 at the time of publication on Tuesday, according to Benzinga Pro.
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