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Snowflake: the hottest IPO of the year

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Miguel A. Rodriguez
Miguel A. Rodriguez
16 September 2020
Can Snowflake “make it snow”?

After Apple's latest product launch was completed, the town's new talk is another tech company – Snowflake Inc, an enterprise specialized in cloud computing services.

In just a few years, the California-based startup became a competitor of some industry behemoths like Microsoft and Amazon. After securing a prime slot in this sector, it's on its way to top another milestone – becoming a publicly-traded company. Given the buzz around its IPO and the vote of confidence received from one of the most prominent investors in the industry, Warren Buffett, Snowflake is on its way to raise the largest IPO in the US #software sector ever, according to ft.com. 

According to data from Refinitiv, Snowflake's IPO is the biggest of this year and the largest in the US after the 2019 Uber IPO of $8.1 billion.

The buzz around it is sustained with results: in Q2, Snowflake revenue increased by 121% to $264.7 million, compared to last year's figures. Sales wise, it generates $55 billion per year. 

As mentioned before, the investing guru Warren Buffett is taking a chance with Snowflake. Warren Buffett’s Berkshire Hathaway will purchase $250 million in stock alongside the flotation, and another $320 million from Snowflake’s former CEO, Bob Muglia. 

So far, investors pledged to purchase 28 million shares at $120 each. The price could raise the company’s market cap at $33 billion. 

Snowflake will start trading this Wednesday on the New York Stock Exchange, having the ticker SNOW.

Check-out CAPEX.com and register to download our special report!

Sources: marketwatch.com, ft.com, fortune.com


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.