Will Snowflake Be Worth More Than Alphabet by 2030?
By Leo Sun - Aug 20, 2022 at 7:28AM
Snowflake has grown like a weed over the past several years.
Its premium valuation reflects the market’s high expectations.
Its stock could double or triple by the end of the decade – but it will still be dwarfed by Alphabet and the other cloud kings.
Snowflake (SNOW -4.83%) has taken investors on a wild ride since its IPO in September 2020. The cloud-based data warehousing company went public at $120 per share, then more than doubled on its first trade to $245. It attracted so much attention for two reasons: It was growing like a weed, and it was backed by Warren Buffett’s Berkshire Hathaway and Salesforce (CRM -2.21%).
Snowflake’s stock eventually soared to an all-time high of $401.85 last November. But today, it trades at around $170 per share. The high-flying stock dropped back to the earth as investors fretted over its slowing growth, lack of profits, and high valuations – which made it a soft target for the bears while rising interest rates drove investors toward more conservative investments.