Snowflake just had its best day ever ❄️

Welcome back to the Day Trading newsletter 📈

Tech is back in the driver's seat.

Snowflake's after-hours moonshot dragged the AI software trade out of its month-long funk, even as the Fed's preferred inflation gauge hit its hottest level since 2023.

It was a one-two punch that left the S&P 500 and Nasdaq inches from fresh records.

Let’s get into it 👇️ 

👻 Salesforce beat the quarter but the guide spooked the tape. The company delivered adjusted Q1 EPS of $3.88 versus the $3.12 consensus on $11.13 billion in revenue, but Q2 and full-year revenue guidance came in just below estimates, sending shares lower after-hours. CRM is now down roughly 33% year-to-date as the "SaaSpocalypse" AI-disruption narrative pressures legacy software multiples.

🖥️ Best Buy surged 15% on a clean Q1 beat, reporting adjusted EPS of $1.28 versus $1.23 expected on $8.94 billion in revenue. Gaming, computers, and phones drove the upside; appliances dragged. Shares ripped about 15% Thursday, the stock's biggest one-day pop in nearly a year.

📦️ Costco Q3 net sales topped $69 billion, up 11.6% year-over-year with comparable sales up 9.8% (adjusted 6.6%), and net income of $2.19 billion. Digital sales rose nearly 21%. The membership engine keeps printing through a choppy consumer backdrop.

🇮🇷 U.S. and Iran agree on a 60-day Hormuz framework, but the deal is still awaiting Trump sign-off. Negotiators reached a memorandum of understanding to extend the ceasefire and gradually reopen the Strait of Hormuz, with Iran pledging to begin demining the waterway and to refrain from tolling commercial ships. The deal still needs President Trump's approval and a final sign-off from Tehran. WTI crude tumbled more than 5% Wednesday to settle near $88.68 on the news.

📉 Bitcoin fell roughly 2% Thursday to about $73,460 after dipping below $73,000 in the morning session, as spot ETF outflows and renewed Iran-Hormuz jitters triggered leveraged liquidations across the crypto complex. Most major altcoins followed BTC lower, a sharp reversal from the risk-on tone driving equity records earlier in the week.

Snowflake posted Q1 fiscal 2027 revenue of $1.39 billion, up 33% year-over-year, beating the $1.32 billion consensus.

Product revenue grew 34% to $1.33 billion, net revenue retention came in at 126%, and the company raised full-year product revenue guidance to $5.84 billion (31% YoY growth).

Tucked alongside the print was a five-year, $6 billion commitment to Amazon Web Services that includes a major endorsement of AWS's custom Graviton CPUs.

Shares popped roughly 36% in Wednesday after-hours trading, on pace for the stock's best one-day move ever.

TThis is the largest expansion of Snowflake's 11-year AWS relationship.

It’s 2.4x bigger than the $2.5 billion deal it signed in 2023 and roughly 5x its original $1.2 billion IPO-era commitment from 2020.

The Graviton piece is the part Wall Street is chewing on hardest. Arm-based chips like AWS Graviton are quietly displacing Intel and AMD x86 silicon inside hyperscaler data centers because they deliver more compute per dollar and per watt.

Snowflake just publicly bet on that thesis at the scale of an entire data cloud.

For Amazon, locking in $6 billion of multi-year compute revenue is validation that its in-house chip strategy is winning real enterprise AI workloads, not just internal services.

The broader software tape needed this badly: AI-disruption fears had Salesforce down 33% YTD heading into its own print Wednesday, and the "SaaSpocalypse" narrative was getting loud.

What to watch:

• Whether the rest of enterprise software (Databricks, MongoDB, ServiceNow, Datadog) can ride Snowflake's coattails or whether traders treat this as a Snowflake-specific story.

• AWS's next earnings disclosure for any signal that Graviton mix is accelerating

• How much of Snowflake's $5.84 billion full-year guide is contingent on AI-native usage (Cortex, Snowpark) versus its core data-warehousing business.

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⚠️ Disclaimer: Not financial advice. Do your research before making any trades.