Why Snowflake Stock Gained 15% in August

Shares of Snowflake (NYSE:SNOW) were climbing last month after the cloud-based data warehousing company delivered a strong second-quarter earnings report. According to data from S&P Global Market Intelligence, the stock finished August up 15%.

As you can see from the chart below, it was an up-and-down month for Snowflake, but the earnings report late in the month helped the company finish August with double-digit gains.

SNOW Chart

SNOW data by YCharts

So what

Snowflake has been volatile since its IPO a year ago, as high-growth, high-priced stocks often are. However, the second-quarter report helped show why the stock warrants a high multiple.

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