The biggest initial public offering of the year — and the largest software IPO ever — hit the open market Wednesday as shares of cloud-based tech company Snowflake went public.
Shares of Snowflake Inc. (NYSE: SNOW) surged more than 110%, closing at $253.93. The Snowflake IPO saw 28 million shares sold, raising almost $3.4 billion, with Berkshire Hathaway Inc. (NYSE: BRK.A; NYSE: BRK.B) and Salesforce.com Inc. (NYSE: CRM) buying $250 million in stock at the $120 IPO price.
That pushed the total to nearly $3.9 billion. Underwriters also have the option to buy 4.2 million more shares, which could push the Snowflake IPO to $4.4 billion.
Trading was so fervent, shares hit a session high of $319. At the closing price, the company was valued at about $70 billion after its first day of trading.
With tech stocks being all the rage in 2020, it sounds like a great opportunity to get in on the Snowflake IPO ground floor right?
Snowflake IPO: Why You Should Ignore the Headlines
I did an interview Wednesday and I was asked if there was anything I truly “hate” in this industry.
I had some trouble answering because “hate” is such a strong word. And it’s not a good emotion to have because it takes too much energy to hate anything.
But if I had to pick something, I’d say I “hate” these big headlines screaming about such and such company and its stock, in this case the Snowflake IPO, rocketing up 110% its first day of trading.
Few things are more damaging to the average trader’s psyche and long-term success than seeing headlines like this. It creates fear of missing out, or FOMO, and it causes many people to throw down a big chunk of their savings or their kid’s college fund on the next big thing.
Sure, you might double your money. But you also might lose it all.
That said, is Snowflake worth buying?
Check out my video below and we’ll get into more analysis of the company and stock itself.
What do you think about the massive Snowflake IPO? Is this a company you’re interested in investing in, or is it too soon to tell? Check out the video and then share your thoughts below.
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