Snowflake Inc (NYSE:SNOW) shares are trading higher on Monday. The stock is gaining traction even as the Nasdaq falls 0.69% and the S&P 500 sheds 0.41%.
Investors are rotating back into growth-oriented cloud and software names. This follows a prolonged “SaaSpocalypse” sell-off that erased billions in market cap.
• Snowflake stock is showing exceptional strength. What’s fueling SNOW momentum?
Moving Past SaaSpocalypse Fears
The recent downturn stemmed from fears that AI agents would erode subscription growth. High-profile names such as Salesforce Inc (NYSE:CRM) and Cloudflare Inc (NYSE:NET) faced sharp selling pressure.
However, the tide is turning. Wedbush analyst Dan Ives labeled the carnage “overdone.” Ives argues the market underestimates how AI will expand software budgets during large-scale rollouts.
Ives framed the recent panic as a “generational buy.”
The Empire Strikes Back
Market commentator Jim Cramer noted the shift on social media last week. He quipped that the “software empire strikes back.” Cramer highlighted a reluctant short-covering rally across marquee SaaS names.
While no single blockbuster announcement occurred on Monday, the sector is finding support. ServiceNow Inc (NYSE:NOW) and Palo Alto Networks Inc (NASDAQ:PANW) are also seeing renewed interest.
Technical Analysis
Snowflake is still sitting in the lower half of its 52-week range after a steep reset from the November high. The stock is trading 0.1% below its 20-day simple moving average (SMA) and 22.3% below its 100-day SMA.
Over the past 12 months, the stock is up 10%. Still, with the 52-week low set in April and the stock well below the 52-week high, the chart reads more like a rebuild than a clean uptrend.
- Key Resistance: $158
- Key Support: $145
SNOW Stock Price Activity: Snowflake shares were up 4.84% at $151.05 at the time of publication on Monday, according to Benzinga Pro data.
Photo: Michael Vi / Shutterstock
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