The increase in Snowflake IPO makes it a pricey tech stock by a mile

Snowflake shares began trading on the New York Stock Exchange on Wednesday.


Snowflake Inc. The record’s initial public offering gives the company an eye-popping appraisal that looks cheap to other obscure technology names by comparison.

Snowflake share,
+ 111.60%
The company rose 111.6% in Wednesday’s session after making the largest software software IPO on record. The stock’s big rally, which was held above the range already raised by Snowflake, left the company with a market value of about 70 70 billion, five times the private market valuation of billion 12.4 billion in February.

The company has become the largest by double the market value on its first day of trading, according to previous 1995 data.

Snowflake IPO: 5 things to learn about a Berkshire-backed company after its record-breaking software offering fur

Investors in early public offerings entered shares of Snowflake during the hot period, also giving the company a rich valuation by standards of high-flying tech names. Snowflake earned 40 403 million in revenue in the last four quarters by offering database software for the cloud, leaving it with a market capitalization-to-sales ratio of about 175x.

Snowflake’s first-day pop-up is based on a data analysis from Factset, which makes Metrics a name for ProList Technol, which looks at more than 400 million companies with annual revenues.

Zoom Video Communications Inc. ZM,
Crowned for the most expensive tech stock by many metrics, but its proportion of sales value in the last four quarters is relatively half of Snowflake, which is about 87 87x. Zdeskler Inc. ZS,
Another hot cloud-software software name, its sales value is about 39 times.

According to Beth Kindig, an independent tech investment g investment analyst, Snowflake has opened up 98 times its industry value for the next 12 months. Factset does not yet provide a revenue estimate for Snowflake.

It zoomed in 31 times on its opening trading day and Crowdstrike Inc. Compares 23 times with CRWD.
Kindig said when the cybersecurity company entered the market. Both companies jumped only 40 times in their first month of trading.

Snowflake sold 28 million shares to raise million 3.36 billion through its offerings, and Berkshire Hathaway Inc. BRKA,
+ 0.30%

+ 0.29%
And CRM,
Agreed to buy $ 250 million shares at a time at the cost of each IPO, bringing the total to 8 .8686 billion. Underwriter has the option to buy 2.4 million more shares, which could bring in as much as Snowflake eventually brings in 4. 4.2 billion.

“The focus around Snowflake’s IPO is a special example of how adopted cloud computing makes companies in the space more valuable,” wrote Andrew Little, a Global X topics research analyst covering the cloud.

Uber Technologies Inc. May 2019 has been the busiest week in the initial public offering since it was launched by Israeli software company JFrog Ltd. FROG.
+ 47.25%
Joined Snowflake with the start of its Wednesday trade. US listed shares of Jeffrog, which makes software for developers, completed the session by 47%.

Read: Snowflake Syringe and Jeffrog jump with more software companies in the red-hot IPO market.

Snowflake’s IPO renaissance IPO came as an ETF IPO,
+ 0.06%
Over the year and as the S&P 500 SPX, up 59%,
Increased by about 5%.