Snowflake Inc.’s shares skyrocketed on their first day of trading, giving the biggest tech IPO of the year a market value of $70.4 billion and feeding the recent bout of enthusiasm around initial public offerings.

Shares of the data-warehousing company closed at $253.93, more than double their IPO price of $120 and roughly triple what the company initially targeted a week ago for its offering. Just after the stock opened, it traded as high as $319. Wednesday’s ascent means the company is now valued at more than five times the $12.4 billion valuation it notched in a private funding round in February of this year.

“Does this put pressure on us? Of course, it does,” Frank Slootman, Snowflake’s chief executive, said about the company’s soaring stock price. “It’s a vote of confidence. But clearly as a management group and as an employee base we have to work extremely hard to deliver on it.”

Snowflake is one of several buzzy “unicorn” startups that had been expected to go public before the end of 2020, a list that also includes Airbnb, Palantir and DoorDash. Another smaller software tools developer, JFrog, also went public Wednesday and did well: Shares rose nearly 50% from their IPO price. Snowflake helps blue chip companies analyze and share data in the cloud.

The company said in its most recent regulatory filing with the Securities and Exchange Commission that it now has more than 3,100 customers, double the total from a year ago. That includes 146 of the Fortune 500 firms. Snowflake disclosed last week that Salesforce, the cloud giant that was recently added to the Dow, and Buffett’s Berkshire Hathaway would each buy $250 million in Snowflake stock in a private placement following the IPO.

The partnership with Snowflake could help Salesforce compete even more effectively against the Amazon, Microsoft, and Google owner Alphabet. Snowflake competes with Amazon’s AWS, Microsoft’s Azure, and the Google Cloud platforms.

Todd Horwitz Chief Strategist BubbaTrading.com
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On Saturday September 12th we presented our Equity Portfolio Management Model. Here is the recording from the event

Equity Portfolio Management Recording