This article first appeared on GuruFocus .

Datadog ( NASDAQ:DDOG ) rose 5.02% premarket, moving in sympathy with Snowflake ( NYSE:SNOW ). Snowflake reported second quarter product revenue up 37% to $1.49 billion, and raised full-year product revenue guidance to $6.07 billion from $5.84 billion. Snowflake shares rose 23.33% in premarket.

Datadog has spent a month under pressure since it reported earnings on August 6. The stock fell 19% despite beating on revenue and earnings and raising its full-year outlook, after management disclosed that its largest customer would cut usage. Chief financial officer David Obstler told the call the company had seen "a usage reduction, which is incorporated in our Q3 and full year 2026 guidance."

Datadog expects third quarter revenue of $1.135 billion to $1.145 billion, implying roughly 28% growth. The company said more than 750 AI customers use its platform, including all ten of the largest AI companies.