TMTB EOD Wrap; SNOW CRM First Takes
Good afternoon. QQQs -11bps as SOX -1.4% underperformed slightly after an early morning green to red reversal in many names. Oil -4% providing a bid to many consumer disc stocks in tech and outside. Let’s dive straight into earnings post-close….
SNOW +30% ripping on a stellar q with Product revenue +34% y/y (highest growth since Q1 2025 and biggest product rev beat in since then) vs bogeys closer to 30% and a guide implying 30% y/y at the high end vs bogeys of 26% despite a 5ppts tougher comp. Assuming same beat they just put up that gives you something closer to 33-34% growth and bulls will be excited about the mid 30s growth vs. just playing for anything with a 3 handle…some bulls likely even thinking mid to high 30s product rev growth in 2H of CY year with these numbers…now raising FY margin to 13.5% vs 12.5% which helps alleviate concerns around Cortex headwinds. All-in-all, looks really good so far.
In addition, striking a $6B deal with AMZN with for Graviton Chips.
DDOG +5% / MDB +8% in sympathy.
CRM -1.5% not that exciting with cRPO at low end of what buyside was expecting (13-14%). Nothing to change narrative here and remains unexciting.
Revs of $11.13b vs. Street at $11.05b.
cRPO of 13% with buyside ~14%.
CRM guided July revenue/EPS to $11.31b/$3.26 vs. Street at $11.35b/$3.25 CRM guided April cRPO growth to ~13% compared to Street at ~13%
CRM guided July revenue growth to 10% in CC vs buyside at 10% range
Let’s get to the recap…
INTERNET
META +3.4% after launching Instagram FB, and Whatsapp subscriptions. Here’s TechCrunch:
For a few dollars per month, consumers subscribing to Instagram Plus ($3.99/mo), Facebook Plus ($3.99/mo), or WhatsApp Plus ($2.99/mo) will gain access to extra features, like profile customization, super reactions, and story insights, among other things.
Alongside the launch, Meta says it will begin testing even more subscription plans, which is where things start to get confusing.
For Meta AI users, it will test two plans — Meta One Plus ($7.99/mo) and Meta One Premium ($19.99/mo) with the same features, but the Premium plan unlocks more capacity on higher compute queries. That means the Premium plan would offer deeper reasoning for complex tasks (i.e., more of “thinking mode” in the Meta AI app or on the web). It would also offer move video and image generation capabilities across Meta’s apps.
A nice feather in the “META will monetize their capex” narrative: