Snowflake Inc. ( SNOW ) shares are moving higher Thursday, bouncing back after falling amid overall tech weakness on Wednesday. The stock may be benefiting from strong quarterly results from ServiceNow Inc. ( NOW ) .

What Happened With NOW: ServiceNow ( NOW ) reported second-quarter revenue of $2.627 billion, surpassing the consensus estimate of $2.607 billion. This beat in earnings has driven a positive sentiment in the market, causing ServiceNow ( NOW ) shares to rise by 14.7% to $837.96 at the time of publication Thursday.

Analysts cite robust U.S. federal business and increasing AI software adoption as key drivers of this performance.

Why It Matters: Snowflake and ServiceNow ( NOW ) are both significant players in the cloud computing sector. ServiceNow’s strong performance may indicate a positive trend for similar companies, suggesting that Snowflake could also experience favorable results in its upcoming earnings report.

Price Action: Snowflake shares were up by 4.20% at $130.90 at the time of writing, according to Benzinga Pro.

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