Key insights
- Snowflake's strong product revenue growth and a significant $6 billion deal with AWS suggest a broader trend of increased cloud and AI-related spending. While Snowflake's revenue recognition may lag, this indicates strong underlying demand for cloud infrastructure and AI services. Investors should monitor bookings for companies like Datadog and ServiceNow, which are positioned to capture this spending earlier, potentially signaling future growth for the broader tech sector.
snowflake just absolutely lost its mind this quarter. like product rev is up 34% to like 1.33B which is insane, and everyone on here is freaking out over the stock popping but they are completely missing the actual point, the real juice is one layer deeper. they just locked in a massive 6 BILLION dollar deal with AWS and bought natoma, which means agentic AI is actually happening, but that money hits the plumbing first. like before snowflake even sees that revenue, amazon is capturing the cloud spend, datadog is grabbing all the telemetry dollars, and servicenow is swallowing the workflow orchestration. its a massive timing mismatch and that mismatch is literally where the free money is if you trade it right. i am so stressed about the timeline for the natoma rollout though bc nobody knows the latency on those features (if anyone has the roadmap pls drop it below im begging u). basically ignore the headline lag and watch ddog and now bookings right now for the real alpha. is anyone else tracking this or am i just screaming into the void??