Read This Before Chasing Snowflake's Hot IPO
Snowflake (NYSE: SNOW) recently became the biggest software IPO ever after the cloud-based software company raised $3.4 billion by selling 28 million shares. The stock was priced at $120 a share on Tuesday -- well above its previously anticipated range of $75 to $85 -- and started trading the next day.
Snowflake then opened at $245 a share on Wednesday and ended its first trading day at $253.93 -- marking a 112% gain and valuing the company at $70.5 billion. Investors were clearly impressed by Snowflake's triple-digit revenue growth, and big purchases by Warren Buffett's Berkshire Hathaway and Salesforce at the offering price reinforced that bullish sentiment.
That's great news for bigger investors who bought IPO shares, but retail investors who weren't as fortunate are probably wondering if it's wise to chase this high-flying stock. Let's discuss four key things you should consider before buying shares of Snowflake.
Source Fool.com
