What Happened?
A number of stocks jumped in the morning session after strong earnings from enterprise leaders ignited a massive rally across enterprise tech.
Atlassian led the charge, soaring nearly 30% after reporting 32% revenue growth and an unexpected acceleration in cloud adoption. Similarly, Twilio jumped 20% following its fastest growth in three years, fueled by a surge in demand for its AI-integrated voice tools.
This recovery was also bolstered by record-breaking cloud strength; while AWS grew a solid 28%, Google Cloud stunned Wall Street with a 63% revenue increase, proving that enterprise AI infrastructure spending is finally translating into tangible, top-line returns for the software layer. This rally reflected a strategic pivot as investors returned to high-growth software-as-a-service (SaaS) names that previously trailed the broader market.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Data Storage company DigitalOcean (NYSE:DOCN) jumped 4.1%. Is now the time to buy DigitalOcean? Access our full analysis report here, it’s free.
- Data Storage company Snowflake (NYSE:SNOW) jumped 5.1%. Is now the time to buy Snowflake? Access our full analysis report here, it’s free.
Zooming In On Snowflake (SNOW)
Snowflake’s shares are very volatile and have had 21 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 3.4% on the news that the company announced that OpenAI's latest model, GPT 5.5, became available on its Snowflake Cortex AI platform.
As a launch partner with OpenAI, Snowflake provided same-day availability of the new model in a private preview. This integration made GPT 5.5 accessible within Snowflake's secure environment for use with its suite of AI tools. The positive development seemed to overshadow news about a deadline for a federal securities class-action lawsuit filed against the company. Some analysts noted that the litigation was a known issue and did not alter the company's business trajectory.
Snowflake is down 32.4% since the beginning of the year, and at $146.59 per share, it is trading 47.1% below its 52-week high of $277.14 from November 2025. Investors who bought $1,000 worth of Snowflake’s shares 5 years ago would now be looking at only $671.19.
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