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SNOW Stock Explodes 35% After Earnings Beat, Raised Guidance, and Massive AWS AI Deal

Snowflake ($SNOW) stock surged in premarket trading after a huge earnings beat, stronger-than-expected guidance, and a new AWS AI collaboration. Here’s what traders need to know about $SNOW right now.

STOCK ANALYSISAI STOCKSEARNINGS

Tom Smart

5/28/20262 min read

TABLE OF CONTENTS:

Snowflake (SNOW) Earnings Recap

Snowflake delivered a blowout first-quarter fiscal 2027 report, posting $1.39 billion in revenue versus $1.32 billion expected and adjusted EPS of $0.39 versus $0.32 expected. Management also raised its full-year fiscal 2027 product revenue guidance to $5.84 billion, which implies 31% year-over-year growth, and lifted operating margin guidance to 13.5%. On top of that, Snowflake announced a new multi-year AWS collaboration aimed at accelerating enterprise AI adoption. The market clearly liked the combination of accelerating growth, stronger margins, and an improving AI story, sending SNOW to about $240 today after closing at $175.26 the prior session.

Snowflake’s breakout puts the spotlight on cloud peers like Datadog ($DDOG), another name traders often watch for similar momentum in enterprise software and AI infrastructure.

Bull Setup:

$SNOW is showing a powerful post-earnings breakout, and the bulls are in control as long as the stock holds the new gap-up level. The key thing to watch is whether $SNOW can hold above the 238.80 area and keep trading above the $240 handle. If buyers defend this zone, the stock can stay in momentum mode and continue higher.

Bull trigger:

  • Hold above $238.80.

  • Better confirmation above $240.00.

  • Stronger continuation if it clears $243.94.

Bull thesis:

  • Huge earnings beat.

  • Raised full-year guidance.

  • Operating margin improvement.

  • AWS collaboration adds fuel to the AI narrative.

Bear Setup:

The bear case is simple: if $SNOW fails to hold the breakout and starts losing the lower end of the gap-up zone, the move can turn into a fast fade. After a move this large, traders will be watching for profit-taking and gap retracement risk.

Bear trigger:

  • Lose $238.80.

  • Then lose $236.55 / $236.01.

Bear thesis:

  • The stock is extremely extended after the gap.

  • Early buyers may lock in profits fast.

  • If momentum stalls, the stock could chop hard before choosing direction.

Trading Plan:

Aggressive long:

  • Buy strength above $240

  • Add confidence on a break above $243.94

  • Keep risk tight if it slips back under $238.80

Safer long:

  • Wait for a pullback that holds the $236.55–$238.80 zone

  • Look for reclaim strength before adding

Short/fade plan:

  • Only consider a fade if SNOW loses $238.80

  • Better short signal if it breaks $236.55 / $236.01

  • If that happens, the gap-up starts losing steam fast

Bottom line:

$SNOW is a strong post-earnings momentum name right now. The earnings print was real, the guidance was better, and the AWS deal gives the story extra fuel. My bias is bullish as long as the stock holds the $236– $239 area, but after a move like this, I would not chase blindly — I’d wait for either a clean breakout or a controlled pullback.

Disclaimer: This article is for informational and educational purposes only and is not financial advice. Always do your own research and manage risk carefully.