As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the data storage industry, including Snowflake (NYSE: SNOW) and its peers.

Data is the lifeblood of the internet and software in general, and the amount of data created is accelerating. As a result, the importance of storing the data in scalable and efficient formats continues to rise, especially as its diversity and associated use cases expand from analyzing simple, structured datasets to high-scale processing of unstructured data such as images, audio, and video.

The 4 data storage stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.5% while next quarter’s revenue guidance was in line.

Luckily, data storage stocks have performed well with share prices up 27% on average since the latest earnings results.

Best Q2: Snowflake (NYSE: SNOW)

Named after the unique architecture of its data warehouse which resembles a snowflake pattern, Snowflake (NYSE: SNOW) provides a cloud-based data platform that enables organizations to consolidate, analyze, and share data across multiple cloud providers.

Snowflake reported revenues of $1.14 billion, up 31.8% year on year. This print exceeded analysts’ expectations by 4.9%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ billings estimates.

Snowflake scored the fastest revenue growth of the whole group. The company added 48 enterprise customers paying more than $1 million annually to reach a total of 654. Unsurprisingly, the stock is up 12% since reporting and currently trades at $224.60.

We think Snowflake is a good business, but is it a buy today? Read our full report here, it’s free.

MongoDB (NASDAQ: MDB)

Named after "humongous database," reflecting its ability to handle massive data loads, MongoDB (NASDAQ: MDB) provides a flexible document-based database platform that helps developers build, deploy, and maintain modern applications more efficiently.

MongoDB reported revenues of $591.4 million, up 23.7% year on year, outperforming analysts’ expectations by 6.8%. The business had a very strong quarter with an impressive beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.

MongoDB delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The company added 58 enterprise customers paying more than $100,000 annually to reach a total of 2,564. The market seems happy with the results as the stock is up 48.3% since reporting. It currently trades at $318.

Is now the time to buy MongoDB? Access our full analysis of the earnings results here, it’s free.

Slowest Q2: DigitalOcean (NYSE: DOCN)

Built for simplicity in a world of complex cloud solutions, DigitalOcean (NYSE: DOCN) provides a simplified cloud computing platform that enables developers and small businesses to quickly deploy and scale applications.

DigitalOcean reported revenues of $218.7 million, up 13.6% year on year, exceeding analysts’ expectations by 1%. It may have had the worst quarter among its peers, but its results were still good as it also locked in full-year EPS guidance exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

DigitalOcean delivered the weakest performance against analyst estimates, slowest revenue growth, and weakest full-year guidance update in the group. Interestingly, the stock is up 30.9% since the results and currently trades at $35.40.

Read our full analysis of DigitalOcean’s results here.

Commvault (NASDAQ: CVLT)

Born from the need to create ironclad protection in an increasingly dangerous digital world, Commvault (NASDAQ: CVLT) provides data protection and cyber resilience software that helps organizations secure, back up, and recover their data across on-premises, hybrid, and multi-cloud environments.

Commvault reported revenues of $282 million, up 25.5% year on year. This print topped analysts’ expectations by 5.2%. It was a very strong quarter as it also logged a solid beat of analysts’ billings estimates and an impressive beat of analysts’ annual recurring revenue estimates.

The stock is up 16.8% since reporting and currently trades at $191.

Read our full, actionable report on Commvault here, it’s free.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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