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Yesterday, Snowflake (SNOW), one of the most anticipated IPOs in recent history, hit markets. With names like Berkshire Hathaway and Salesforce getting in on the IPO, should you be looking at SNOW as your next big investment?
Snowflake Inc. is a cloud-based data-warehousing startup that was founded in 2012, and yesterday they hit public markets. So what exactly does that mean?
What Is An Initial Public Offering (IPO)?
Well, an IPO, or Initial Public Offering, is a way for a company to raise capital in exchange for small pieces of their company called stock shares… and let’s just say that the SNOW IPO was a big one!
In fact, their IPO set a record for software companies and has been the biggest in the U.S. this year.
Originally their IPO price was supposed to be between $75-$85, but last week both Berkshire Hathaway and Salesforce committed to buying millions of shares.
Because of this, the price was then set to release between $100-$110. But this afternoon, around noon when they finally started trading, it opened up at $249.99.
Within a matter of minutes it shot up as high as $318.01. That was over a 27% move within 3 minutes… crazy! That is what we call FOMO (Fear Of Missing Out) in the trading world. And that’s what tends to happen with IPOs.
By the end of yesterday’s trading, Snowflake (SNOW) closed up on the day 3.64%.
