Cloud company Snowflake made an impressive opening today on their first day of trading.
The stock (SNOW) closed at $253.93, 111.6% above the IPO price.
One day earlier, Snowflake’s shares were priced at $120, much higher than the range the company proposed last week (from $75 to $85).
It opened at $245, after a 104% rise, the biggest opening gain of any IPO since at least 2008, according to data compiled by Bloomberg (excluding deals that raised below US$1 billion).
The IPO price gave Snowflake a $33 billion valuation.
It became the biggest software IPO this of all time. The firm raised $3.4 billion.
And as soon the stock began trading this Wednesday on the New York Stock Exchange, it jumped to $245, giving the company a $69 billion value.
A Word of Caution
Despite the massive gains in its debut, it’s important to remain cautious and not get caught up in the hype before reading the fine print.
Snowflake isn’t profitable yet.
For the six month period ending July 31, the California-based company founded in 2012 reported a loss of $171 million, down from $ 177 million during the same period last year.
The revenue, though, was $242 million, more than double the $104 million one year earlier.
Snowflake is part of the “unicorn” startup group that the market is expecting to go public this year.
The list also includes Airbnb, Palantir, and DoorDash.
Not the Only IPO
Another, smaller tech company also debuted today on Wall Street and did well.
The Israeli software firm JFrog (FROG) started trading on Nasdaq at $44 and closed 47% higher, at $64.79
JFrog raised $353 million and was valued at about $4 billion.
Like Snowflake, its revenue is growing, but the company is not profitable yet.
For the six-month period ending June 30, JFrog reported revenue of $69.25 million, up 50% from the year-ago period. It posted a net loss of $426,000, down from $2 million loss one year earlier.