Datadog shares rise after hours on Snowflake earnings optimism
Datadog (DDOG) is higher in Wednesday’s after-hours trading, after Snowflake reported a double beat for Q2, boosting AI data cloud optimism. DDOG was up 4.80% to $219.27 in extended trading.
Datadog Inc (NASDAQ: DDOG ) shares are rising in Wednesday’s after-hours session following strong earnings from Snowflake Inc (NYSE: SNOW ).
Datadog stock is moving higher.
Why are DDOG shares rallying? Snowflake’s Strong Results Drive AI Data Cloud Optimism Snowflake on Wednesday reported a double beat for the second quarter, reporting revenue of $1.55 billion versus estimates of $1.48 billion and adjusted earnings per share of 62 cents versus estimates of 45 cents.
The company is benefiting from the enterprise AI revolution with product revenue up 37% year-over-year and remaining performance obligations of $9 billion, up 30% year-over-year. “AI continues to compound our advantages, creating a flywheel effect across the business,” CEO Sridhar Ramaswamy said.
Snowflake stock soared more than 22% following the report, pulling Datadog up with it.
Datadog offers an AI-powered observability and security platform, and often moves in sympathy with Snowflake.
Datadog reported its own second-quarter results last month, beating estimates on the top and bottom lines as AI drove strong demand.
The company also raised its full-year guidance on the back of continued AI momentum.
Datadog Shares Pop After Hours DDOG Price Action: Datadog stock was up 4.80% in extended trading Wednesday, trading at $219.27 at the time of publication, according to Pro.
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