Shares of Snowflake Inc., the California-headquartered cloud-based data warehousing startup, more than doubled up at its New York Stock Exchange debut, remarking the largest software debut ever in the 228-year history of NYSE.
Aside from that, latest upsurge in Snowflake shares came forth a day after the 92-year-old American billionaire investor Warren Buffet-backed software firm had raised a whooping upsum of $3 billion in the largest US public listing this year thus far, however, Snowflake Inc.
shares had shrugged off 9.60 per cent of its previous session’s gain on Thursday to wind down the day at $227.54, as a number of US investors had decided against holding on to Snowflake Inc. stocks. However, despite a Thursday tottering of Snowflake’s shares’ prices, the data warehouse firm’s stupendous market debut had illustrated a broad-based appetite for the newer stocks in the US money markets as a multi-year low interest rate appears to be forcing people to invest into the equities.
Market overlooks Snowflake losses as offices adopt remote working
In point of fact, despite a number of loss-making ventures of the California-based data warehouse firm, investors were reportedly turning a blind eye to Snowflake’s losses and had been focusing more on the prospects of its data sharing business in the clouds, which had been experiencing a maverick growth momentum over the recent months as many big-league corporates had turned to remote working.
In tandem, a day after raising over $3 billion at its NYSE offering, Snowflake shares had started off trading at $245 a share, more than double of its IPO price of $120 apiece, and rounded off the day 111 per cent higher to $255.93, eventually raising the Snowflake market cap to a jawdropping $70 billion.
Aside from that, as the Buffet-backed Snowflake Inc.
had sold off roughly 28 million shares at its initial public offering and raised around $3.36 billion in the largest software firm debut, data from Factset had revealed that only three companies having at least a market cap of $10 billion such as Nikola Corp., Liberty Broadband alongside Immunomedics Inc., have been more expensive than Snowflake Inc.’s 2020 revenue surge.