Shopify shares jump 6.8% as Snowflake's earnings suggest AI drives more platform consumption rather than displacing SaaS

Snowflake reported that AI accounts on its platform jumped from 9,100 to 13,600 in a single quarter, product revenue grew 34%, and full-year guidance was raised by $180 million. Snowflake's stock surged 35% on the results, its best single day ever.

Instead of autonomous AI agents replacing subscription software licences, enterprises are using AI to generate more workloads that run on data platforms. Snowflake's CFO described Cortex Code as creating a 'step function change' in AI revenue potential and said it was the single largest driver of the full-year guidance raise.

The market treated the news as meaningful but not fundamentally reshaping its view of Shopify: the stock gained 6.8% in the afternoon session and closed at $113.16, up 5.9% from the previous close. Shopify has had 33 moves greater than 5% over the last year.