Why Valuation Matters for Snowflake Investors
It's official: Snowflake (NYSE: SNOW), a company most investors had never even heard of just a few months ago, has become the largest software IPO in history. On Wednesday, the company raised a net of more than $3.25 billion in cash and counts among its new investors a diverse group from Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) to software-as-a-service giant salesforce.com (NYSE: CRM). Shares more than doubled from their IPO pricing of $120 in the first day of trading (although as of this writing, it has cooled off to "only" about $228 a share).
At this juncture, the average investor should read this, take a deep breath, and take a long walk.
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Source Fool.com
