Breakfast News: SNOW's Sunny Outlook

Breakfast News: SNOW's Sunny Outlook

Source: Image Created by Jester AI.

1. Snowflake Sees Strong Summer Sales

Snowflake (SNOW 10.56%) surged over 9% in pre-market trading following a strong outlook for sales, with product revenue predicted to jump 25% in the coming quarter thanks to the benefits of recent product enhancements including Cortex AI.

• Adding 400 workers in the largest hiring spree since early 2023: The Stock Advisor recommendation has pushed hard to integrate AI into its cloud data analytic services, with more companies spending big on these products as they look to shift workloads to the cloud.
• "We really have not seen the impact of anything with the current news on tariffs": CFO Mike Scarpelli reassured investors on concerns surrounding import levies, implying the software industry isn't immediately affected by recent changes.

2. Nike Just Did it Again With Amazon

Nike (NKE 1.62%) confirmed it will sell directly on Amazon (AMZN 0.89%) for the first time since 2019. The move is seen to help broaden the scope for sales for Nike, as it seeks to boost revenue as part of the broader strategy shift.

• Serving "consumers wherever and however they choose to shop": Nike confirmed the expansion went beyond Amazon, partnering with Printemps as a physical store partner and launching a new AI-powered conversational search to improve their online shopping service.
• The new deal represents a win for Amazon: Having previously lost clients like Nike due to worries around counterfeit products on the site, the partnership is a big tick in the box of attracting more high-end brands to the platform.

3. Bitcoin Breaks Big Barrier

Bitcoin (BTC 3.10%) broke $111,000 for the first time, setting fresh all-time highs at $111,878, as a wave of optimism around greater U.S. regulatory support gathers momentum.

• Hopes fueled on broader acceptance of crypto initiatives: A stablecoin bill passed a procedural block, with it now set to be debated in the U.S. Senate later this week with the potential for it to be passed imminently.
• "Unlike previous cycles, this rally is not momentum-drive alone": Julia Zhou, COO of crypto trading firm Caladan, explained they are seeing measurable and persistent demand from investors.

4. Can INTU, WDAY, CPRT Impress the Market?

Intuit (INTU 0.56%) is set to release earnings after the closing bell, with investors hoping to build on the strong previous quarter. Customer retention rates on QuickBooks and Mailchimp will be important, alongside demand for TurboTax during the U.S. tax season.

• Products helping to drive customer retention: Rule Breakers rec Workday (WDAY 1.22%) topped earnings estimates last quarter thanks to the AI-enhanced product line up. With quarterly results due out after the market closes, the adoption rate of such products will be watched.
• Continued focus on expansion in EMEA: Copart (CPRT -0.83%) reports after hours, with high single-digit percentage growth expected for both revenue and earnings versus the same period last year, driven by expanding services for the international dealer network.

5. POTUS Ponders Floating Fannie and Freddie

Mortgage finance companies Fannie Mae and Freddie Mac could be set to go public, after President Trump confirmed he was giving serious consideration to the proposal.

• "The time would seem right": Trump spoke about the idea on Truth Social, citing the recent strong performance of both for-profit corporations.
• Still under government conservatorship since 2008: Previous attempts to remove government control and return them to the public market have failed, with Treasury Secretary Scott Bessent previously saying the mortgage rate trajectory would be a key consideration in any decision.

6. Your Turn

One for the engineers, draftsmen, and architects out there: Do you use AutoCAD, the flagship software by Autodesk (NASDAQ:ADSK) – reporting after the closing bell – for most of your design work? Do you think there is any other Computer Aided Design (CAD) software out there that the industry is moving toward? Discuss with friends and family, or become a member to hear what your fellow Fools are saying.