Cloud Software Stocks Rip Higher After Strong Earnings from Snowflake, Others

Many enterprise software stocks are adding to their big 2020 gains on Thursday, as investors take heart in a batch of strong earnings reports that were posted on Wednesday afternoon.

Zscaler  (ZS) – Get Report is up 24.3%, Okta  (OKTA) – Get Report is up 6.9%, Snowflake  (SNOW) – Get Report is up 16%, Elastic  (ESTC) – Get Report is up 14.2% and CrowdStrike  (CRWD) – Get Report is up 15.1% after each company comfortably beat its October quarter estimates and (generally speaking) issued strong guidance. And a number of other software names appear to be catching sympathy bids.

Palantir Technologies  (PLTR) – Get Report, which tumbled yesterday on a Morgan Stanley downgrade, is up 8.8%. Smartsheet  (SMAR) – Get Report is up 6.8%, Datadog  (DDOG) – Get Report is up 4.8%, Unity Software  (U) – Get Report is up 5.2%, ZoomInfo  (ZI) – Get Report is up 5.1%, Tenable Holdings  (TENB) – Get Report is up 5.4% and Asana  (ASAN) – Get Report is up 5.2%. DocuSign  (DOCU) – Get Report, which reports after the bell, is up 6.1%.

While the aforementioned reporting companies differ from each other in terms of what they sell and (in many cases) how they sell it, they each reported strong double-digit sales and billings growth, while offering an upbeat view of the demand environment that they’re currently seeing.

Source Article