SNOW is in no man's land; wait for support or reversal signals before trading.

The next stock on our list is going to be Snow and what a move. Snow, ticker SN, surged 23.42% as it posted upbeat financial results for the second quarter.

The next big earnings report was Snow and this stock is up 72 points just about or 23 and a half%. And you can see that the move here on this recent structure. This is a big-time snap.

So, it actually looked like we coughed up the 20, rolled over to test the low and perhaps find support at the 50. Did not quite get there and then bang, we got this earnings report plus 23%.

If we zoom out here, you will notice that while we are forming an island, it is not above the all-time high. These levels should come into play if the stock continues. I've got this at about 403 and then 4:30 uh thereabouts.

Well, the Snowflake CEO says data, not software, will defined the next era. Quote, "Owning the user experience is critical." Snowflake reported second quarter revenue of 1.55 billion, which beat the estimate of 1.48 48 billion while adjusted EPS of 62 cents topped the expectation for 45.

For the third quarter, Snowflake expects product revenue of 1.588 billion to 1.593 billion. That's up about 37.5% year-over-year, and it projected an adjusted operating margin of 15.5% for the quarter and 14.5% for the full year. That's up from its previous forecast of 13.5%.

Artificial intelligence is reshaping enterprise software and snowflake CEO Shredar Ramaswami believes the shift could make data more valuable not less valuable.

Shredar Ramaswami believes the shift could make data more valuable not less valuable. On Wednesday, Ramaswami made the comments during Snowflake's fiscal second quarter earnings call, responding to a question about traditional SAS companies partnering with large language models and moving deeper into database functionality as AI software easier as AI makes software easier to create.

I can confirm by the way, Ramaswami argued that company's underlying data and context surrounding it will become increasingly important.

Snowflake sees its extensive customer data footprint combined with access to leading AI models as a key advantage. Quote, it's the data and semantics that acquire more and more importance. End quote. That was from Ramaswami.

He also stressed the importance of controlling how customers interact with the data. Quote, I have been very very consistent for now two plus years in my conviction in our conviction that owning the user experience is critical. End quote.

Ramaswami pointed to Snowflake AI's products including Coco and Co-work as examples of how the company wants to move beyond its traditional data platform role. At the same time, he acknowledged that Snowflake must work alongside the broader software ecosystem rather than replace every application that customers use.

Again, the SAS apocalypse not happening. EVP of product at Snowflake Christian Kleinerman said companies are unlikely to copy the same data into multiple applications simply because those applications are adding database capabilities.

Instead, Snowflake is positioning itself as a centralized data layer supported by birectional zero copy partnerships with software providers.

The CEO The CEO also highlighted Snowflake's investments in application development, saying the company can support both analytical and operational applications. He pointed to hybrid tables and Postgress as foundational technologies for what Snowflake sees as a new generation of agentic applications, including applications with or without traditional user interfaces.

So, snow huge move here. We got another Snory story story on Snow here.

Like, like honestly, like nobody even brought that up. We're talking about Snow's massive beat. How about you tell me if you like Snow today, if this was worth a buy or buy on a pullback?

I mean, come on. All right. Um, Snowflake's AI business is booming, but it's making less money doing it. And its CFO, Brian Robbins, just tells you what the actual catch is here.

Snowflake, ticker SN, their artificial intelligence business helped fuel a third straight quarter of accelerating revenue growth, while the company's own numbers reveal that the shift towards AI workloads comes at a cost, and that is lower product gross margins.

CFO Brian Robbins told analysts during the company's second quarter earnings call that Snowflake now expects a 74% non-GAAP product gross margin for the fiscal year. That's a downward revision he attributed to the success of its AI business.

Remember, we actually saw Marll slightly decrease their margin. Stack got hit on it. He says, quote, "This revised outlook includes a higher revenue mix for fast growing AI workloads which carry a lower contribution margin." that again came from Robbins and he went on to say adding that shift in mix between AI products and Snowflake's core data platform was the direct driver of the change.

Despite the gross margin pressure, the AI data company's overall profitability improved this quarter with non-GAAP operating margin expanding to more than 400 basis points year-over-year to 15% and the company raised its fullear operating margin guidance from 13.5% to 14.5%.

The CFO pointed to cost discipline elsewhere in the business as a factor. Boy, cost discipline. I wish that's something that we could get going around here, adding that quote, "We offset growing cloud costs with slowing headcount expense."

End quote. Year-to date, Snowflake has added just 334 employees, including 173 from an acquisition, compared with the 935 in the same period last year, even as revenue growth accelerated.

So, that's interesting. They're actually adding less people while revenue growth is still accelerating. That's a good sign.

the other big one that we're looking at is going to be Snowflake. Oh, look at this baby. This reminds me of Dell. Uh this I would not be surprised if we saw profit taking like we saw on Dell.

I don't know that the same thing's going to happen here with Snowflake, but let's use this as a learning experience. If Snowflake opens today and starts to trade back in and we see some of the profit taking that we that we have been accustomed to seeing, let's try and exercise some patience.

And if we get any signal that stock is coming into a support or reversing, that perhaps is your upside trade.

what I would say here with Snow, watch for a profit taking pullback like we saw on Dell.

Um, we'll take a quick look here at snow. So, it looks like this did dip just a tad, but it looking like it's So, we're still within this pre-market range. Remember, we discussed this this morning when we first took a look at snow.

I got to be honest with you. I still think you're in no man's land here on snow. Until you decide to break the low here or the high, I kind of think you're in no man's land. I think you can be patient.

Let's do another quick check in on snow here. CEN continues to pull. Uh snow. Oh man, the anticipation. You're killing me, chart. You're just killing me, Snow. Here. We're getting our profit taking move.

We're getting our profit taking move. Where does it bottom? That's the question. Still in no man's land at the moment.

and then uh you were saying you liking the snow short here. So snow. So I still think we're kind of in that pre-market range. I still kind of think this is snowman's land. We did test the bottom end of that though at 367.

Snow trying to hold VWAP. Still in that range. Still like will not break out or down from this range.