SNOW - An IPO Destined To MELT
Snowflake had another meltdown. The stock had nearly 50% short interest a week ago. Now, the short interest is nearly 30% - The $6.2 billion (Unicorn), Databricks entering the IPO in 2021 and with Azure - Microsoft's Cloud Computing Platform entrance into the cloud computing market, is applying more pressure onto Snowflake. Microsoft has launched Azure - Microsoft's Cloud Computing Platform Government, targeted towards handling classified documents.
Snowflake's market cap and share price are roughly 2,100% larger than their tangible book value and tangible book value per share, indicating it's run too far too fast. Snowflake has now entered the $100 billion market cap club, but their financial metrics don't support the valuation as net income is negative and revenue won't break $1 billion this year.
Snowflake is another classic example of a much-hyped #unicorns gone #bust. To get our continuous coverage and detailed calls and analysis, visit our website www.altexpertnetwork.com and click on the top right corner, "Subscribe."