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Snowflake just put up a very loud quarter
Snowflake came in with product revenue growth that accelerated to 34% year over year, which is a fancy way of saying the company is no longer limping along in the slow lane. In investor-speak, that’s the kind of number that makes people sit up straighter in their chairs.
The AWS plot twist
The bigger wrinkle is the new $6 billion AWS deal, which adds a little extra theater to the earnings story. It’s not every day a company can say, “Our growth is speeding up, and also we just got a giant cloud partner checkbook involved.” That’s catnip for anyone trying to figure out whether Snowflake’s demand story is getting sturdier.
Why you should care
For you, the investor, this matters because Snowflake is trying to prove it can be more than a pricey software darling with a good slide deck. If product revenue is accelerating and a major cloud relationship is deepening, the market gets to dream a little bigger about durability, scale, and maybe even better operating leverage down the road.
- Faster growth can support a richer valuation, especially for software names that trade on future potential.
- A large AWS deal can boost confidence that Snowflake is embedded in the cloud ecosystem instead of floating out there on its own little data island.
- If the company keeps stringing together quarters like this, the “show me” phase starts looking a lot more like “okay, maybe this works.”
Big picture: Snowflake is giving investors the two ingredients they love most — growth and a narrative. And in tech, that combination can keep the stock doing backflips longer than you’d expect.