Snowflake is about to go public. It’s already value greater than $33 billion

Dow 30 shuffle brings in three new stocks


Snowflake priced its preliminary public providing Tuesday evening at $120 a share — effectively above the anticipated vary of $100 to $110. That value vary was revised upwards from the unique expectation of $75 to $85 a share earlier this month. It will commerce on the NYSE below the ticker image of “SNOW.”

The firm is promoting 28 million shares and can elevate practically $3.four billion from the IPO. At its $120 share value, Snowflake shall be valued at $33.Three billion.

To put that into context, that makes Snowflake, which was simply based in 2012. value greater than established corporations within the S&P 500 like Bank of New York Mellon (BK), Hershey (HSY) and Allstate (ALL) in addition to Dow parts Walgreens (WBA) and Travelers (TRV).

Snowflake is considered one of a number of buzzy “unicorn” startups anticipated to go public earlier than the top of 2020, an inventory that additionally contains Airbnb, Palantir and DoorDash.

Snowflake helps blue chip corporations analyze and share knowledge within the cloud.

The firm mentioned in its most up-to-date regulatory filing with the Securities and Exchange Commission that it now has greater than 3,100 clients — double the overall from a 12 months in the past. That contains 146 of the Fortune 500 corporations.

Snowflake CEO Frank Slootman and different firm executives are among the many high particular person traders within the firm. Top enterprise capital corporations Altimeter Capital, ICONIQ Capital, Redpoint Ventures, Sequoia and Sutter Hill additionally personal important stakes within the firm.

Snowflake disclosed final week that Salesforce, the cloud big that was lately added to the Dow, and Buffett’s Berkshire Hathaway would every purchase $250 million in Snowflake inventory in a personal placement following the IPO.

The partnership with Snowflake may assist Salesforce compete much more successfully towards the likes of Amazon (AMZN), Microsoft (MSFT) and Google proprietor Alphabet (GOOGL). Snowflake competes with Amazon’s AWS, Microsoft’s Azure and the Google Cloud platforms.
Berkshire’s funding marks a uncommon foray by Buffett into the world of tech startups. Berkshire tends to take a position extra in mature corporations like Apple (AAPL), which is now the Oracle of Omaha’s high holding. Berkshire made a bet on Amazon final 12 months.

Snowflake just isn’t a typical Berkshire wager, as a result of it’s not but worthwhile — regardless that gross sales are quickly rising.

Revenue greater than doubled prior to now six months, to $242 million. But the corporate posted a web lack of $171 million — barely lower than the loss it posted in the identical interval a 12 months in the past.

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