❄️🔥 Living Up the Hype - Snowflake Makes IPO History

What you need to know before the US markets open 🇺🇸

Sep 17, 2020

Hey Global Investor, here's what you need to know before the US markets open.

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Market Snapshot 📈

S&P 500 (Wednesday Close) 3,385.49 −15.71 (0.46%)

NASDAQ (Wednesday Close) 11,050.47 −139.86 (1.25%)

FTSE 100 (5 PM IST) 6049.68 -28.8 (0.47%)

NIFTY 50 (Today's Close) 11,516.10 −88.45 (0.76%)

USDINR (5 PM IST) 73.65 (1 Year +2.87%)

Snowflake Makes IPO History

Snowflake Inc. surpassed all expectations with an IPO that raised $3.36B and set a record.

What Happened? Snowflake, which had estimated an initial offering price of $80 per share, bumped it up to $110 and finally settled at $120. Demand for the 28M shares on offer was so high, the trades on the exchange started at $245 per share, valuing the company around $68B. Compare that with its $12.4B valuation in the Series G round just six months ago!

The 8-year old cloud-based data warehousing company has become the largest software IPO ever, raising over three times what VMware did in 2007. One of the reasons for the hype around Snowflake is the twin commitment from Salesforce and Berkshire Hathaway to each buy $250M worth of shares at the IPO price. Berkshire is also purchasing an additional $320M of stock from a selling investor.

Snowflake’s scalable database software runs on Amazon, Microsoft, and Google’s cloud services, and provides support for data engineering, data warehousing, and data science. The company has 3,117 clients, grew its revenue by 130% in the first six months of 2020, and has managed to stem losses. It plans to use the proceeds from the IPO to strengthen R&D, marketing, and sales.

Market Reaction: Snowflake stock rallied 111.61% to close at 253.93.

Snowflake Snapshot 📈

SNOW $253.93 +133.93 (+111.61%)

Newsworthy 📰

Be Careful What You Type: Google is tightening rules on internal message boards as ‘new world creates urgency’ (GOOG -1.33%)
Save the Date: Sony announces PS5 price and release date: Starts at $399 and launches Nov. 12 (SNE +0.69%)
Unexpected: Spotify falls after Apple launches new services bundle (SPOT -1.29%, AAPL -2.95%)

Later Today 🕒

6.00 PM IST: Initial jobless claims (total, NSA)
6.00 PM IST Continuing jobless claims (total, NSA)
6.00 PM IST: Housing starts (SAAR)
6.00 PM IST: Philly Fed manufacturing index

Fun Fact of The Day 🌞

The Crown Jewels contain the two biggest cut diamonds on Earth

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