Keen investor interest in Snowflake's initial public offering (IPO) has driven up the proposed stock price higher for the second time in just a week, according to multiple reports. The data warehouse management company initially priced the shares for its public debut in a range of $75-$85, but just days later, increased the range to $100-$110.
Snowflake has reportedly raised its stock price to $120, an increase of 50% from the mid-range of its original proposal. The shares are expected begin trading on the New York Stock Exchange Wednesday, using the ticker symbol "SNOW."
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This latest move would price the company at roughly $33 billion, nearly three times the $12.4 billion valuation it attained earlier this year in a private offering.
Investors have become increasingly eager to buy into the high-growth, cloud computing company, which provides businesses with a way to pull data from varying systems into one place for analysis. This gives users more complete information upon which to base business decisions. Analysts have suggested that Snowflake's cloud-centric approach has resulted in a more robust data warehouse, making it better able to compete with cloud leader Amazon (AMZN +0.55%) Web Services (AWS).
Sanford C. Bernstein analyst Zane Chrane said that, while AWS is the undisputed leader, "Snowflake has been one of the most disruptive new vendors in the enterprise space in the last few years."
This shows in Snowflake's soaring revenue. For the fiscal year ended Jan. 31, 2020, revenue jumped to $265 million, up 173% year over year. The trend continued into the first six months of this year, with revenue of $242 million, up 133% and nearly as much as all of last year. The company has also trimmed its losses to start out 2020 to $171 million down from $177 million in the prior-year period.
Investments by Salesforce (CRM 2.43%) and Warren Buffett's Berkshire Hathaway (BRK.A 0.03%) (BRK.B +0.14%) have also helped stoked interest.
