Snowflake, MongoDB shares rally sharply after Datadog earnings

Shares of Snowflake Inc. (SNOW), MongoDB Inc. (MDB) and Elastic NV (ESTC) were all rallying sharply in Tuesday's premarket trading after Datadog Inc.'s (DDOG) upbeat earnings report eased fears about consumption-based software companies for the latest quarter. Snowflake shares were up more than 8%, while MongoDB shares were up about 6% and Elastic shares were ahead about 4%. Datadog's stock was surging more than 24% after the software company, which Mizuho desk-based analyst Jordan Klein called "clearly one of the most shorted and over-sold names" in all of software as well as among consumption-based players, topped expectations with its latest results and outlook. "Other peers like SNOW, MDB and ESTC yet to report should bounce, but also a good sign for AWS and Azure demand trends in my view and broader software," wrote Klein, who's associated with Mizuho's sales team and not its research arm.

-Emily Bary

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11-07-23 0801ET

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