Why did Buffett invest in Snowflake?

Berkshire’s interest in Snowflake is another validation of the company’s powerful product and potential. Given their value origins, the fact that they are willing to pay such a high multiple indicates that they believe the company’s performance will enable it to justify this valuation.

Did Warren Buffett invest in Snowflake?

Warren Buffett’s Berkshire Hathaway invested $735 million in Snowflake when the cloud-data platform went public in September. The famed investor’s company bought around 6.1 million shares that have roughly tripled in value to as much as $2.1 billion on Monday — a roughly $1.4 billion unrealized gain.

What price did Buffett buy snow at?

Fair enough. In any case, it’s worth noting that Berkshire Hathaway didn’t pay a high price for SNOW stock. In fact, Berkshire agreed to buy $250 million worth Snowflake stock in a private placement at a cost of just $120 per share.

Is Snowflake worth investing in?

The Bottom Line. Snowflake stock has its upsides and downsides but ultimately, I think the good outweighs the bad. One of the company’s biggest downsides is its price. Even with the recent tech sell-off, SNOW’s stock price of $236 is still high at a market valuation of $67 billion.

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Why did snowflake stock go up?

The low supply of shares is no doubt a major reason the stock has rallied so much since its listing. With Snowflake stock up about 2x from its IPO price, it is very likely that employees and investors could cash out when the post IPO lockup period expires in March 2021, putting downward pressure on the stock.

What did Warren Buffet invest in?

Stocks Warren Buffett just bought: AbbVie (ABBV) Merck (MRK) Bristol-Myers Squibb (BMY)

What did Warren Buffet buy?

Buffett first bought AbbVie (ABBV, $116.89) in the third quarter of 2020 as part of a wider bet on the pharmaceutical industry. Like BMY above, he added to the holding in the fourth quarter before reversing course in Q1. Most recently, Berkshire Hathaway cut its position by more than 10%, or 2.7 million shares.

Who competes with snowflake?

Snowflake’s complicated ties to Amazon present a long-term risk to IPO investors. Snowflake has committed to spending $1.2 billion on Amazon Web Services, which has software that competes with Snowflake. Amazon started taking Snowflake more seriously in 2018, people familiar with the matter said.

Who has invested in Snowflake?

As a private company, Snowflake has raised at least $1.4 billion in funding from investors including Sequoia Capital and Sutter Hill Ventures. The company last raised funding with a $479 million Series G round led by Dragoneer Investment Group.

Who is investing in Snowflake?

ThoughtSpot Takes $20 Million Investment From Snowflake

Snowflake — which has been partnering with ThoughtSpot since 2019 — announced March 9 that it had invested $20 million in the company.

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Why is Snowflake worth so much?

Snowflake is making money on every sale. They have a gross profit of 62% so they have no problem running the product. The thing is they are spending A LOT on sales and marketing. Their total net loss for the last six months was $171M while during the same time period they spent $191M on sales and marketing.

Is Snowflake overvalued?

Although Snowflake is still valued at a relatively rich 62x consensus 2022 revenues, the stock has corrected by about 20% over the last month and is down by close to 39% from its post IPO highs, trading at levels of around $240 per share. Snowflake is also likely to grow into its lofty valuation relatively quickly.

Does Snowflake make money?

Its revenues primarily follow a consumption-based model, where customers pay based on the resources they use. Snowflake also built up the team offering professional services, which helps increase its platform’s adoption.

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