Snowflake Surges on AI-Driven Outlook; Broadcom Slips on Tepid Guidance

Shares of Snowflake surged while Ultragenyx Pharmaceutical plummeted in extended trading as investors digested a wave of corporate earnings reports and clinical trial data. Broadcom also slipped after the chipmaker issued a tepid revenue forecast, signaling headwinds in parts of the semiconductor market.

Tech Sector Sees Divergent Fortunes

Cloud data platform Snowflake (SNOW) saw its stock jump 21% after delivering a strong second-quarter performance and raising its full-year outlook. The company reported earnings per share of $0.62 on $1.55 billion in revenue, beating consensus estimates. More significantly, management projected full-year fiscal 2027 revenue of $6.07 billion, topping the $5.84 billion consensus, citing accelerating demand from enterprise AI data engineering workloads.

In contrast, chipmaker Broadcom (AVGO) fell 3.5% despite a third-quarter earnings beat. The company's fourth-quarter revenue guidance of $34.8 billion came in just shy of the $35.05 billion analysts expected, prompting a sell-off as investors weighed headwinds in the non-AI semiconductor business against growth in custom AI chips.

Other notable tech movers included:

• Netskope (NTSK): Rose 16% after the cloud security firm beat Q2 estimates and boosted its full-year revenue guidance, pointing to strong momentum for its Secure Access Service Edge (SASE) platform.
• NetApp (NTAP): Dropped 7% in a "sell-the-news" reaction. Despite raising its full-year earnings guidance, the stock fell as the market had already priced in high expectations.
• Hewlett Packard Enterprise (HPE): Slipped 1% on apparent profit-taking. The move came even after the company beat Q3 estimates and raised its full-year earnings guidance.

Retail and EV Charging Stocks Rally

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Several consumer and industrial stocks posted significant gains. Action sports apparel retailer Tilly’s, Inc. (TLYS) skyrocketed 32% after a blowout second-quarter report. The company posted Q2 EPS of $0.27 and guided for third-quarter EPS of $0.07–$0.12, crushing Wall Street expectations for a loss.

ChargePoint Holdings (CHPT) surged 16% after the EV charging network operator reported a narrower-than-expected Q2 loss of ($1.35) per share on revenue that topped forecasts. The results were driven by expanding commercial deployments and cost discipline. Meanwhile, Five Below (FIVE) rose 3% after the discount retailer beat Q2 expectations and raised its full-year sales outlook, citing strong back-to-school traffic.

Not all retailers fared as well. PVH Corp. (PVH), parent of Tommy Hilfiger and Calvin Klein, dropped 3%. While its Q2 earnings beat expectations, its full-year EPS guidance of $11.80–$12.10 came in slightly below the Wall Street consensus midpoint, which the company attributed to macroeconomic softness in Europe.

Biotech Stock Plummets on Clinical Trial Failure

Ultragenyx Pharmaceutical (RARE) was the session's biggest decliner, plummeting 40%. The sharp decline followed the company's announcement that its Phase 3 Aspire study for apazunersen, a treatment for Angelman syndrome, failed to meet its primary and key secondary endpoints. The result represents a significant setback for the drug's development program.