It’s the first week of December, and while most of the country is thinking about holiday shopping lists, a different kind of snow storm is brewing on Wall Street. This one is centered around Snowflake—the cloud data giant set to report earnings after the bell on Wednesday. And honestly? The setup feels a lot more exciting than another ugly Christmas sweater.
I was digging through charts late last night when MongoDB dropped its numbers and promptly shot up 25% in the after-hours frenzy. That move didn’t happen in a vacuum. It lit a fire under the entire Internet Services & Infrastructure group, and right now Snowflake sits smack in the middle of that heat map looking awfully constructive.
Why Group Behavior Actually Matters More Than You Think
Let me let you in on something that took me years to fully appreciate: individual stocks rarely move alone. Sure, we love to tell heroic stories about this company or that CEO, but the truth is colder—and far more useful.
Roughly half of any stock’s daily gyration can be explained by what its peers are doing. The other half splits between the broader market and whatever company-specific drama is making headlines. Understanding this simple fact changes how you hunt for trades.
When capital rotates into a particular corner of the market, the rising tide tends to lift every decent-looking boat in that harbor. Right now, money appears to be flowing hard into the plumbing of the cloud world—the companies building the rails that everything else runs on.
The Internet Services & Infrastructure Peer Group at a Glance
Think of these names as the silent backbone of the digital economy. They’re not the flashy consumer apps grabbing headlines. They’re the heavy machinery making sure data moves fast, stays safe, and scales infinitely.
Here’s how some of the key players stack up year-to-date (numbers as of Tuesday’s close):
| Company | YTD Performance | Notes |
| CoreWeave | +95.93% | Still holding key measured-move support |
| MongoDB | +28% (post-earnings spike) | Just proved demand remains robust |
| Snowflake | -18% | Looks oversold relative to peers |
| Cloudflare | +42% | Consistent relative strength |
| DigitalOcean | +33% | Quietly grinding higher |
Notice anything? The laggards are starting to play catch-up exactly when the leaders are confirming strength. That’s textbook sector rotation behavior—and it’s usually profitable to lean into.
Snowflake’s Technical Picture: Cleaner Than It Looks
Zoom into Snowflake’s weekly chart and something interesting jumps out. After getting absolutely pummeled from the 2021 highs (down nearly 70% at the lows), price has spent the better part of 2025 consolidating in a massive range between roughly $108 and $165.
More importantly, the selling appears exhausted. Volume has dried up on the declines, and we’ve seen repeated higher lows since summer. That’s the kind of subtle strength that often precedes sharp reversals—especially when the fundamental catalyst aligns.
There’s also a pretty clear inverse head-and-shoulders pattern forming on the daily timeframe. The neckline sits right around $145. Clear that level with conviction and the measured move target comes in near $195—almost 45% upside from current levels. Not bad for a name many investors wrote off months ago.
The best trades often feel wrong at the exact moment everyone else has given up. Snowflake at $135 after MongoDB’s print feels exactly like one of those moments.
What Wall Street Is Missing About These Names
Traditional analysts keep hammering infrastructure names on margins and profitability. They want GAAP earnings yesterday. But that’s not how this particular game works—at least not yet.
These companies are in land-grab mode. They’re spending billions building out capacity because the winners in cloud data will be determined by who owns the most scalable, efficient architecture five years from now. Current earnings take a backseat to revenue growth and market share capture.
Snowflake’s revenue trajectory tells the real story:
- Last eight quarters: never below 25% year-over-year growth
- Most recent print: 29% growth despite macro headwinds
- Guidance has consistently beaten and raised
When MongoDB guided higher and talked about accelerating AI-related workloads, the market finally remembered what these companies actually do. They’re not selling software licenses anymore—they’re selling the picks and shovels for the AI gold rush.
The Smart Money footprint
Quarterly 13F filings don’t lie. Some of the sharpest growth managers on the planet have been accumulating shares quietly.
Altimeter Capital—run by Brad Gerstner—holds Snowflake as a top-five position. Coatue Management’s Philippe Laffont owns meaningful stakes in both Snowflake and CoreWeave. These aren’t momentum tourists. These are investors who spend their days talking to private AI companies and understand exactly how much data infrastructure the next wave of models will require.
When the people building the future are buying the infrastructure today, I pay attention.
What I’m Watching Wednesday Night
The bar isn’t particularly high. Consensus sits at $1.184 billion in revenue and $0.31 non-GAAP EPS. But the real tells will be in the guidance and commentary.
Specifically:
- Any acceleration in consumption trends (especially AI-related)
- Comments on enterprise budget flush (year-end spending)
- Progress on cost discipline while maintaining growth
Beat and raise with confident commentary? That $145 neckline gets taken out in a hurry. Even an in-line report with constructive language probably sends shares toward $160 relatively quickly given how washed out sentiment has become.
The risk/reward here feels about as asymmetric as it gets in large-cap growth land.
Look, nobody has a crystal ball. Earnings can be messy, and one bad quarter can knock any stock back on its heels. But when you combine improving group momentum, clean technical levels, smart money ownership, and a sentiment extreme… well, sometimes the probability stack gets pretty compelling.
I’ve been waiting for this setup in Snowflake for months. MongoDB just handed the entire group the match. All that’s left is for Snowflake to light it.
Either way, Wednesday should be fun.
Disclosure: The author and/or his advisory clients are long shares of Snowflake at the time of writing. This is not investment advice—always do your own research.
