NEW YORK — Snowflake opened Thursday with a gain of more than 30%, the largest single-session move the data-cloud company has posted in over two years, after first-quarter product revenue of $1.33 billion beat Wall Street consensus by 5% and management raised full-year guidance in a market that badly needed a clean AI earnings story.
A Tape Caught Between Earnings Relief and Geopolitical Drag
The broader market is not celebrating with Snowflake. The S&P 500 closed Wednesday at 7,520.36 and slipped 0.02% into Thursday’s session, while the Dow Jones Industrial Average lost 0.63% and the Nasdaq edged down 0.16%. The divergence is meaningful: single-stock AI names are ripping, but index-level buyers are not committing. The reason sits in the Persian Gulf.
Iran’s Islamic Revolutionary Guard Corps launched an attack targeting a U.S. air base near the Strait of Hormuz overnight. U.S. forces responded by striking Iranian drones and a launch site in the region. Oil prices rose on the news. For traders tracking the macro-to-micro linkage, the durability of any Iran ceasefire has been a live question for weeks, and Thursday’s escalation confirms that the geopolitical discount on equities has not been fully priced out.
On the inflation side, April’s personal consumption expenditures price index printed a monthly gain of 0.4% against a 0.5% estimate, with the 12-month rate at 3.8% — exactly in line with forecasts. That’s the first piece of good news on the macro calendar in several sessions, and traders watching whether the PCE print at 3.8% can sustain momentum have at least a neutral data point to work with. A softer monthly reading does not reopen the door to Federal Reserve rate cuts, but it removes one of the bearish catalysts that has weighed on growth multiples since April.
Snowflake: What the Numbers Actually Say
Snowflake’s Q1 FY2027 results were not just a beat — they were a beat across every line that institutional investors use to gauge whether AI demand is translating into durable revenue. Total revenue of $1.39 billion grew 33% year-over-year against a $1.32 billion consensus. EPS came in at $0.39, clearing the $0.32 forecast. EBIT margins exceeded expectations by 250 basis points, which matters because Snowflake has been under pressure to demonstrate that scale is producing operating leverage, not just top-line growth.
The customer cohort data is equally clean. Customers generating more than $1 million in trailing 12-month product revenue grew 29% year-over-year to 779, suggesting enterprise adoption is accelerating rather than plateauing. Remaining performance obligations — the metric that tells you how much future revenue is already contracted — reached $9.21 billion, up 38% year-over-year. That number, more than the quarterly beat, is what will keep institutional buyers engaged through the afternoon session.
Management raised full-year fiscal 2027 product revenue guidance to $5.84 billion, implying 31% growth for the year. The original guide was already above consensus. Raising it in the first quarter of the fiscal year signals that pipeline conversion is running ahead of internal models — exactly the signal that growth investors pay a premium multiple to own.
Separately, Amazon confirmed that its cloud division secured a $6 billion five-year spending commitment from Snowflake covering services and technology. The headline is bullish for AWS, but it also raises a structural question for Snowflake investors: a company betting $6 billion on a single hyperscaler’s infrastructure has made a strategic choice that limits future leverage in vendor negotiations. That is not a bearish call on the stock today, but it is a footnote worth holding onto for fiscal 2028 modeling.
Kohl’s and the Overlooked Beat of the Morning
Snowflake is consuming the oxygen in the room, but Kohl’s is posting the more surprising story on a percentage-move-versus-expectation basis. The retailer reported a net loss of 13 cents per share against an estimate of 19 cents, with revenue of $3.0 billion versus the $2.99 billion forecast. Net sales declined 1.7% and comparable sales fell 1.1%, but that comp is the best the chain has delivered in more than four years — a data point that reads very differently depending on whether you are a turnaround buyer or a structural-decline seller.
The stock jumped 20% in morning trading. That reaction reflects short covering as much as fundamental conviction. Kohl’s has been one of the most heavily shorted names in the mid-cap retail universe, and a beat that is clean enough to force covering can produce outsized moves even when the underlying business is still contracting on an absolute basis. Traders who bought the bounce need to distinguish between momentum and a genuine thesis change — revenue is still down year-over-year, and the consumer spending environment remains fragile heading into the back half of the year. For broader retail sector context, consumer confidence remains the variable that could unravel this kind of setup quickly.
Also in the opening-bell universe, Rocket One — formerly Hoth Therapeutics — opened up roughly 60% as the stock began trading under its new ticker RKTO for the first time. The biotech-turned-AI infrastructure company rebranded earlier this month. Moves of this kind are almost entirely sentiment and positioning driven, not fundamentals, and they tend to give back sharply within the first trading week of a rebrand. Treat it as noise unless volume confirms sustained institutional interest beyond the first two sessions.
The Levels That Will Define the First Hour
For Snowflake specifically, the key question by 11:00 AM ET is whether the stock can hold above the Goldman price target of $278. A close above that level would signal that the market is pricing in continued upward revision from the analyst community — a constructive read. A fade back below the $248 consensus target would suggest that fast money is using the gap to distribute into strength, which is the more common pattern for stocks that open up 30% on earnings day.
On the index level, the S&P 500’s inability to rally on a 30%-plus move in a major technology name is itself a signal. The Nasdaq’s slight negative reading while Snowflake surges tells you that rotation out of other tech names may be funding the move. Watch for semiconductor names in particular, as traders in AI-adjacent hardware positions may be trimming to buy Snowflake. We covered whether the semiconductor rally has sufficient breadth to sustain itself — and today’s pattern tests that thesis directly.
The geopolitical variable is harder to trade. U.S.-Iran tensions around the Strait of Hormuz have a history of producing sharp intraday reversals when headlines shift. If a ceasefire signal emerges before the close, the risk premium embedded in oil comes out fast and equities could catch a bid. If the situation deteriorates, energy stocks will outperform and growth names will reprice the multiple. Neither scenario is predictable on a one-hour horizon, which is why index-level traders are sitting on their hands while single-stock names move violently in both directions. For the full context on how geopolitical risk is threading through this market, see our earlier analysis of the GDP downgrade and its inflation implications.
| Level / Event | Value | Signal |
|---|---|---|
| SNOW — Consensus PT hold | $248.98 | A fade below this level signals fast-money distribution; hold above suggests institutional accumulation on the gap |
| SNOW — Goldman Sachs PT | $278.00 | Close above here implies market expects further upward analyst revisions; the stock would be trading through its most recent upgraded target |
| S&P 500 prior close | 7,520.36 | Session benchmark; a sustained close below this level confirms the geopolitical discount is widening, not compressing |
| KSS — short-cover exhaustion | +20% open | Watch for momentum stall in the first 30 minutes; if volume dries up after the initial gap, the move is short-covering, not new long conviction |
| SNOW RPO forward signal | $9.21B | 38% YoY growth in remaining performance obligations; this contracted revenue base is what justifies premium multiple continuation through year-end |
The first hour of trade on May 28 comes down to a straightforward test: can individual earnings excellence override a macro environment that is offering traders every reason to stand aside? Snowflake and Kohl’s have answered the earnings question cleanly. The Strait of Hormuz has not answered anything yet. The S&P 500 at 7,520 is the level to watch — hold it and Thursday is a day of dispersion where stock pickers win. Lose it and the geopolitical bid for cash starts to look like the smarter trade heading into the long weekend.
This article is published by PreMarket Daily for informational purposes only. Nothing here constitutes financial advice, investment recommendations, or an offer to buy or sell any securities. Always consult a qualified financial professional before making investment decisions.
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