Snowflake's AI explosion is lifting software stocks — catch-up play on lagging Salesforce
Snowflake just had its best day ever — up 35% — after crushing earnings and signing a $6 billion deal with Amazon's cloud unit. The rally spilled over into other software stocks, but Salesforce initially lagged despite raising its own full-year outlook thanks to its AI agent platform.
Idea
Snowflake's 35% explosion is dragging the whole software sector higher — ServiceNow, Oracle, and Palantir all moved in sympathy. But Salesforce oddly bucked the rally at first, even though it just raised its full-year revenue guidance and reported $1.2 billion in annual recurring revenue from its own AI product, Agentforce. That disconnect between strong AI fundamentals and a lagging stock price usually closes fast as traders hunt for the next name that hasn't moved yet. If the software rally has legs, Salesforce is the most obvious candidate to play catch-up.