Datadog, Snowflake stocks rise after Amazon's upbeat AWS commentary

Software stocks including Datadog Inc. (DDOG) and Snowflake Inc. (SNOW) got a lift in Thursday's after-hours action after Amazon.com Inc. (AMZN)gave upbeat commentary about its AWS cloud-computing business alongside its latest earnings. Amazon posted 12% growth for AWS, with Chief Executive Andy Jassy calling out in the earnings release that this closely watched part of the business "stabilized as customers started shifting from cost optimization to new workload deployment." Datadog shares were up nearly 7% in the aftermarket, as AWS performance is thought to offer a read on the company's own results. There's a "tight tie between Datadog and AWS growth performance," Bernstein analyst Peter Weed wrote back in May. Datadog reports its own results Aug. 8. Shares of Snowflake rallied sharply as well in extended trading, up about 6%. Both names sold off in the wake of results from Microsoft Corp. (MSFT) last week, as that report brought seemingly more measured commentary.

-Emily Bary

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08-03-23 2003ET

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