Oh boy, oh boy, do i have a fun one for you today, snowflake just ipo'd, and it ended up being the largest software ipo like ever there's a huge amount of interest and volatility in the stock, which means that there is ample opportunity for you to make Some money, what is going on moon gang, i hope, you're having a great day. My name is matt and in this video i will be explaining what snowflake does as a company. I will be diving into the details of their ipo and i will also be sharing my personal opinions on the future of snowflake. Make sure you stick around until the end, because i will also be highlighting the upcoming red hot ipos if you're interested in this type of content.

I would appreciate it if you could drop a like, because it really helps with getting this video in front of other people. And if you want to be a member of the moon gang subscribe to the channel and don't forget to turn on your notifications with that. Out of the way, let's get started, alrighty then, so what does snowflake do? Snowflake is a technology company that provides data, storage organization and analysis to its clients, and its services are highly scalable at the time that i'm making this video twenty percent of fortune 500 companies use snowflake and it's the fastest growing software company with a revenue above 100 Million dollars we live in a time where data and the proper analysis of that data is equivalent to power and profits. So you can understand why snowflakes products are very desirable, as you can see from this graphic.

Snowflake is built on the back of the three main cloud providers: google cloud, amazon, aws and microsoft. Azure snowflakes products have three main layers. The first is data storage. The second is robust computation tools and the third is what the public sees and that's their analytical services.

I work as a software engineer and i've personally used comparable products between snowflake, google cloud, aws and azure, and i know this is just an anecdotal point, but snowflake is by far the most flexible. Obviously, snowflake is much smaller than the other three companies, but having a quality product goes a long way. The market agrees with me at least to some degree, because snowflake more than doubled in its market debut on wednesday september 16th. The details of the ipo are actually pretty wild a week before it happened.

The stock's price was set to be in the range between 75 and 85. Then on monday, the 14th. It was bumped up to be between 100 and 110. Then, the day before it got notched up again to 120 and by the time the stock actually started trading.

It was above 240 to give this a little perspective. In february of 2020, snowflake was valued at just over 12 billion dollars, but by the time it made its stock market debut, it was worth a whopping, 68 billion. It's no surprise that some people made a lot of money, both salesforce and our buddy. Warren buffett invested 250 million dollars into snowflake's ipo berkshire hathaway went on to purchase an additional 4 million shares, which means that in a single trading day, warren buffett made a cool billion dollars beyond making an ungodly amount of money.

This is actually kind of noteworthy because it's the first newly public company buffett has invested in since ford's ipo all the way back in 1956. This is the entire stock chart for snowflake, which trades under the ticker snoww. As you can see, it opened at 250. It quickly shot up all the way to 318, it came tumbling down and then it ended its first day of trading just above where it opened, in other words, snowflake's value started out at 68 billion and in the blink of an eye it shot up to 88 Billion and by 4 pm, the company was worth roughly 70 billion dollars, which isn't a bad deal for a company that the day before was only worth 33 billion.

Clearly, snowflake ipo'd with a massive bang, there's a huge amount of volatility, which means there's a lot of opportunity for you to make money. But, as things currently stand, i wouldn't recommend being an investor at these levels at least not yet. Snowflake went through a very expensive expansion last year and the company is yet to be profitable over the next year, they're predicting that they'll have a revenue of 800 million, which is definitely good, but it doesn't really justify a market value of 70 billion. I definitely think that snowflake will be worth this price tag one day, because it's a strong competitor in 130 billion dollar market.

It's just not there quite yet with that being said, though, you can still make a lot of money day trading. The volatile swings you just have to pay attention to the levels of resistance and support. If you're looking for a secondary company that is positioned to benefit off of the snowflake ipo and expansion, i would recommend checking out alteryx which trains under ayx this company offers dashboarding and the visual representation of data analytics. So, in a sense, it works hand in hand with snowflake in less of a direct manner.

Snowflake's jaw-dropping ipo will benefit the other nearby ipos by prompting more hype and excitement and trust me there's a lot to be excited about because of snowflake's ipo success, unity. A 3d engine for video game creation is already raising its stock price for its ipo, which will be as early as friday september 18th. Palantir is another database company that is expected to ipo on september 23rd. Sumo logic provides security and monitoring tools for online applications and is expected to ipo in mid-september and jfrog, which provides devops services.

They help with the deployment of applications is also set to ipo in mid-september all of the companies i've discussed in this video are technology-based companies, with an emphasis on the cloud snowflake's ipo set the bar pretty high, which will be a benefit for all the upcoming initial Public offerings now i don't have a crystal ball, so i can't tell you the future, but i would be willing to bet that the stock market is in for a wild ride for the rest of september. I mean, after all, this is the busiest ipo period since uber's ipo back in may of 2019.. There is a lot of action going on in the stock market right now. Snowflake just had a blockbuster ipo and there are a handful of other interesting ipos on the horizon.

In the short term, i'm expecting snowflake stock price to be very volatile and over the long term, i'm bullish on the company, because it's a solid player in a highly desirable industry. But with that being said, i'm not a financial advisor. So please do your own research. I would love to know your thoughts and opinions on snowflake in a comment below and also feel free to post any of your thoughts on the upcoming ipos, such as unity and palantir.

If you're looking for an awesome group of people who talk about this type of stuff on a daily basis, i would recommend smd training, there's a link in the description of this video. If you enjoyed this video, let me know by hitting the like button and if you want to be a member of the moon gang subscribe to the channel and don't forget to turn on your notifications, thanks for watching and until next time. Best of luck in the markets, you.