Quoted from hisokajp:
I never understood how IPO pricing work... Wasn't it supposed to be priced at $100 but the market opened at $245. So no one was really able to buy them at $100? Seems only good for investor pre-IPO in that case...?
It started at $75-85 then up from there. The demand for the outstanding shares have to balance and the price is set accordingly. Huge hype with this company and its founder.
Salesforce, Buffett and Elon Musk esque CEO drove this through the roof.
In the short run it's gonna end up being a disaster i think for those that pumped it up over $300 and are still holding the bag.
Maybe by 2023 they can justify this valuation IF they keep growing at 100% plus per year? lol
When the underwriters price the shares at what they did originally that is what they thought the shares were worth and what they could get for them.
I think the previous round was priced, pre ipo, in the $30's or less?
Compared to Mongo MDB, a database company we started buying at $37 ish post lock up almost 2 yrs ago and now plus $200, SNOW shot up in one day.....
"MongoDB is a transactional DB built for applications to run on. Snowflake is an analytical database which is more of a data warehouse for large data storage for the purpose of analyzing data not for powering apps."