Snowflake is one of the best software names to catch a rotation out of AI, data center and quantum plays into stocks that actually grow their margins with AI. On the chart, a power gap was followed by a flush-out one day and a regain the next. x.com  x.com 

Software stocks such as Snowflake, Salesforce and CrowdStrike could be strong tomorrow as money rotates out of end-of-the-world names. x.com 

Snowflake looks overhyped, with Wall Street analysts projecting only a 16.86% return over the next 12 months. x.com 

Snowflake combines accelerating growth with margin expansion, which justifies a valuation that is not cheap. EPS beat as total revenue rose 35% and product revenue rose 37%, a third straight quarter of acceleration. Remaining performance obligations grew 30%, net revenue retention was 126%, and guidance rose for product revenue, gross margin and operating margin. x.com 

High-quality software stocks such as ServiceNow, Cloudflare, Figma and Palantir look set to gain as money eventually rotates out of crowded semis, memory, data centers, AI infrastructure, space and defense. Software is underloved, and these names rose in sympathy with Snowflake's strong earnings, possibly the start of a rotation. The quiet third month of the quarter is a good time to position for gains into mid-July earnings, and insider buying is a signal worth following. x.com 

Snowflake now looks really expensive against a $180-200 valuation, even though the business remains strong. It is growing around 30% and pushing hard into AI with its cloud data solutions, which could drive strong growth for years. x.com 

Snowflake and Oracle join the software names that, at decade lows, can rise at least 2-3x before retirement. The dot-com toppers are the precedent: chip, interconnect, optics and memory names fell 90-95% after 2000 and still came back 1,000-2,000% over 26 years. They now sit beside ServiceNow, Atlassian, Salesforce, Microsoft, Figma, Workday and The Trade Desk, preferred over chasing AI names. @TheShortBear notes investors are capitulating into AI as cheaper stocks keep getting cheaper. x.com 

Snowflake remains headed to $390 a share by end-2027 because investors have yet to fully realize it benefits from AI rather than being disrupted by it. It guides for 31% growth and roughly $1.5B of free cash flow, moving toward $2B a year. Buying before the market latches onto that narrative captures the easy money, while waiting for market clues means trailing the market. x.com 

Snowflake's valuation looks full after more than doubling since May on an AI inflection story, given five years of promised inflections that didn't materialize. Stock-based compensation remains heavy at $1.6B against FY2026 revenue of $4.7B, though dilution has been kept in check lately. At about 23x EV/revenue, or 19x forward, it sits near the top of its 2-3 year range. A Databricks IPO could make investors see Snowflake as old relic tech. x.com  x.com 

Snowflake is becoming a key platform for enterprise and agentic AI, because companies deploying AI agents need real-time, governed data and Snowflake sits at the center of that workflow. A strong earnings and guidance beat triggered a power earnings gap on four times normal volume, and the gap's low remains key support. x.com