5 Reasons Investors Are Paying a Premium for Snowflake
When Snowflake (NYSE: SNOW) made its market debut last week, the things that immediately stood out were the overwhelming demand for its shares and the premiums investors were willing to pay to buy them. After management initially planned to price the IPO in the $75 to $85 range, the company boosted the range to $100 to $110 before the stock officially priced at $120 per share. On a price-to-sales basis, the data warehouse and business analytics provider currently sells for over 150 times trailing-12-month sales as of this writing when a ratio of between one and two is considered good.
