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Cloud data platform Snowflake launched it's IPO Wednesday under the symbol $SNOW and priced at $120 a share. It hit a high of $319 just after the open fueled by news Berkshire Hathaway and Salesforce bought shares in concurrent private sales.

SnowFlake IPO

Snowflake raised its estimated IPO price by around 30% in a new S-1 filing Monday. Last week, Snowflake revealed in a filing that Berkshire Hathaway and Salesforce each agreed to buy $250 million of stock at the IPO price in a concurrent private placement. This saw the stock open at . This was almost triple of expectations just a week ago before the announcement of the private sales and a hesitant market post Covid.

SNOW Opens .....

SNOW First Day

SNOW First Day Trading

Berkshire Hathaway and Salesforce agreeing to buy shares in concurrent private sales.

Berkshire Hathaway also agreed to buy 4.04 million shares in a secondary transaction from former CEO Bob Muglia. At the midpoint of the new estimated price range of $110, Berkshire Hathaway’s total stake in Snowflake after the IPO would be valued at $674.4 million, compared with the roughly $550 million it would have been worth at the midpoint of the previous range.

Popular initial public offerings this year.

Inari Medical has risen 297% since its May IPO, BigCommerce has gained 252% since its August IPO, and Schrodinger is up 212% since its February IPO. The Renaissance IPO ETF, is up nearly 60% this year.

The IPO market ground to a halt in April, so much of what you’re seeing now is some pent-up demand for IPOs with the explosion of stocks higher since the depth of despair in the Covid market swoon. Demand is pumped by y fiscal and monetary stimulus, 

Other IPOs on The Radar

Ant Financial

Ant Financial is the next big IPO to watch. Ant Financial, backed by Chinese e-commerce company Alibaba, has generated interest because of its Alipay payments system. Alipay processed $17 trillion in transactions in China last year.

Unity Software

Another debut to watch is Unity Software, a platform for developers to create and distribute content,. They claim that their engine was represented in 500 of the top 1,000 games in Apple and Google Play’s store. They compete with Epic Games, creator of Fornite.

Unity recently said it plans to sell shares as high as $42, giving the company a roughly $11 billion valuation.

About SnowFlake

Snowflake gives businesses new ways to store and access data in the cloud, rather than relying on databases tied to hardware. The company is growing fast, reporting that revenue in the first half of 2020 more than doubled to $242 million from $104 million a year earlier.

However Snowflake faces a complicated relationship with Amazon Web Services as it relies on AWS to host a significant portion of its business, while also competing against the Amazon Redshift cloud data warehouse offering.

From The TradersCommunity News Desk

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