Snowflake Inc.’s registration gives an eye-catching rating to the initial public offering company, which looks cheap compared to other lung technology names.
Shares of Snowflake SNOW,
Wednesday’s session was up 111.6%, after the company registered its largest software IPO. The Big rally of stocks, After Snowflake priced its offer above the already raised limit, left the company with a market value of about $ 70 billion, which is five times higher than the $ 12.4 billion private market value it received in February.
According to biological data going back to 1995, the company has become twice as large by market value on the first day of its business.
In a hot period of early public offerings investors poured into Snowflake’s shares, giving the company a rich rating even by the standards of high-flying technology names. Snowflake has generated $ 403 million in revenue over the past four quarters by providing database software for the cloud, with a market capitalization of 175x.
Snowflake’s first day pop, by that metric, makes an expensive technical name, which saw companies with more than $ 400 million in revenue based on FactSet’s data analysis.
Zoom Video Communications Inc. ZM,
It holds the crown for the most expensive technology stock by many measurements, but has sold half of its market value over the past four quarters of the snowflake, i.e. 87x. Zscaler Inc. ZS,
Another hot cloud-software name with a rating of 39 times its sales.
According to independent technology investment analyst Beth Kindick, Snowflake opened 98 times its estimated value to revenue over the next 12 months. Perspective for Foxet Snowflake has not yet provided revenue estimates.
This compares 31 times to Zoom on the opening day of trading and 23 times to Credstrike Inc. CRWD,
When the cyber security company introduced its market, Kindick said. Both of those companies grew just 40 times in the first months of trading.
Snowflake sold 28 million shares to raise 36 3.36 billion through its offering, and Berkshire Hathaway Inc. BRK.A,
And Salesforce.com Inc. CRM,
Each agreed to buy $ 250 million worth of shares simultaneously at an IPO price, raising the total to $ 86.3.86 billion. Underwriters have the option to buy a further 4.2 million shares, which will eventually raise up to $ 4.4 billion for Snowflake.
“The focus around Snowflake’s IPO is a great example of how cloud-computing adoption can make aerospace companies more valuable, especially when it comes to facilitating virtualization,” wrote Andrew Little, a global X-themed research analyst. .
In What a thrilling week for early public presentations Uber Technologies Inc. Since its inception in May 2019, JeffRock Ltd., an Israeli software company. FROG,
Snowflake merged with Wednesday’s business launch. US-listed shares of JFrog, the developer of software for developers, closed the session at 47%.
Snowflake’s IPO revival came as the IPO ETF,
The year has risen 59% and the S&P 500 has become the SPX,
Has received about 5%.