Snowflake Inc.’s record initial public offering gives the company a striking value that makes it look cheaper when compared to other bubbly tech names.
Snowflake SNOW’s stock,
It surged 111.6% in Wednesday sessions after the company produced the largest software IPO ever. that much Big rally of stocksThe company, which came out after Snowflake priced its products above the already raised range, left a market value of about $70 billion, more than five times the private market value of $12.4 billion it acquired in February. .
According to Dealogic data dating back to 1995, the company doubled and doubled on the first day of trading, making it the largest by market value.
Investors poured it into Snowflake’s stock during the hotter days for an initial public offering, giving the company a wealth of value, even as a benchmark for its highly blown tech name. Snowflake provided database software for the cloud, with sales of $330 million over the past four quarters, with a market cap-to-sales ratio of about 175 times.
Snowflake’s first day pop became the most expensive tech name in its metric, based on FactSet’s data analysis, which looked at companies with annual sales of over $400 million.
Zoom Video Communications Inc. ZM,
It ranks #1 for the most expensive tech stocks in many metrics, but the market value-to-sales ratio for the last four quarters is roughly 87 times that of Snowflake. Zscaler Inc. ZS,
Another popular cloud software name is worth about 39 times its sales.
According to independent technology investment analyst Beth Kindig, Snowflake opened in the next 12 months at 98 times the value of the company’s expected revenue. FactSet does not yet provide an estimate of the expected revenue for Snowflake.
Trading commencement date 31x for Zoom, CrowdStrike Inc. Compared to 23 times for CRWD.
Kindig said when a cybersecurity company made its market debut. Both companies were a little over 40 times the first month of trading.
Snowflake raised $3.36 billion by selling 28 million shares through its offering, and Berkshire Hathaway Inc. BRK.A,
And Salesforce.com Inc. CRM,
Each agreed to purchase $250 million of shares at the same time at the IPO price, raising the total to $38.6 billion. Insurers have the option to buy 4.2 million more shares, which could lead to the amount Snowflake could ultimately raise $4.4 billion.
“Snowflake’s interest in IPOs is a great example of how accelerating cloud computing adoption is making space-related businesses, especially those that make virtualization exploration easier,” said Andrew Little, thematic research analyst at Global X for Cloud. Said. .
on Will be one of the busiest weeks for public offerings Israeli software company JFrog Ltd. has since debuted in May 2019 by Uber Technologies Inc. FROG,
Joined Snowflake with its trading debut on Wednesday. JFrog’s U.S.-listed stock of making software for developers raised the session by 47%.
Snowflake’s IPO is the Renaissance IPO ETF IPO,
It has risen 59% this year and as the S&P 500 SPX
Increased by about 5%.
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