Brad Menezes
Co-Founder & CEO of Superblocks, Enterprise Vibe-Coding
Snowflake and Datadog can withstand more competition because it comes alongside a massively expanded market, as cloud and inference providers saw in recent years. Responding to @GrantM's view that their high pricing invites rivals, open source and pressure on net retention, high pricing is not fundamental to the model. These companies can accept lower gross margins to secure revenue growth if needed, and already do by reselling AI tokens through their AI features. x.com x.comÂ
Snowflake, Datadog and Cloudflare are AI winners the market is missing, since more AI agents mean more data, compute and storage on their platforms. They gain value as new agentic workflows are built on them daily, need no business model reinvention since they are already consumption-based, and hold billions in committed contracts ready to consume. CIOs would rather spend AI budgets on these mission-critical systems than risk replacing them. Be greedy when others are fearful. x.comÂ
Datadog is one of the best-run software companies, spending more on R&D and much less on sales and administration than peers while still growing 36% recently. Rubrik and Snowflake spend massively on SG&A, and Palo Alto Networks and CrowdStrike are no better. x.com x.comÂ
Snowflake is overlooked AI infrastructure because every enterprise AI model needs clean, governed data to run on. It has 126% net revenue retention, $9.77 billion of contracted future revenue and 813 of the world's 2,000 largest companies as customers. x.comÂ
OpenAI and Anthropic will eat Snowflake's and Databricks' business. Both cloud data platforms are cooked. x.comÂ
Snowflake is evolving from a cloud data warehouse into the default data and AI control plane for large enterprises, an inflection the market misses by treating it as a maturing former hypergrowth name. The shift shows in customer commitments, workload expansion and platform centrality, supporting a credible path to $500. @buccocapital notes a customer rebuilt Gainsight on Snowflake in five hours, suggesting it may be the assailant in the SaaSpocalypse rather than a victim. x.com x.comÂ
Snowflake doesn't deserve to be caught in the SaaS selloff because AI is accelerating its business rather than disrupting it. CEO Sridhar Ramaswamy says Cortex Code, its data coding agent launched nine weeks ago, is already used by 50% of customers, making it the fastest-adopted product Snowflake has launched. Early adopters increased their Snowflake consumption by 11% on average. x.comÂ
Snowflake keeps losing market share, and not just to Databricks. In hiring-demand mentions, Microsoft Fabric jumped 165% and Databricks grew 40% year over year, while Snowflake and Google BigQuery rose the least at 15%. x.comÂ
The more AI the world builds, the more data flows through Datadog. Revenue growth re-accelerated to 32% from 28%, the rarest signal in software in 2026. As the single pane of glass for cloud infrastructure, it monitors AI workloads that generate 10-100x more telemetry, with OpenAI, Anthropic and AWS using it for GPU clusters, token costs and model latency. AI-native revenue is about 12% of the total and growing triple digits, and expected revenue CAGR is 22%. x.comÂ
Datadog was wrongly caught up in the 'AI is killing software' selloff, because it is the tracking and logging tool for AI agents and is moving into security for agentic agents. AI tools in software developers' hands should also drastically speed feature development and releases at software companies. After earnings, $200 is likely a magnet. x.com x.com x.comÂ
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.comÂ
Zeta Global, ServiceNow, Datadog and CrowdStrike look increasingly attractive among software names as AI disrupts applications: businesses with proprietary data that build on AI and deliver intelligence and measurable outcomes could win. Cybersecurity valuations remain a concern. x.comÂ
