Cloud-storage firm Snowflake is now more valuable than IBM after 258% post-IPO rally
- Snowflake has surpassed IBM in market value just three months after its September market debut.
- Snowflake's post-initial public offer rally of 258% has propelled the cloud-storage firm to a market valuation of roughly $120 billion.
- That represents a 10-times return for investors in Snowflake's last private funding round in February, when the tech company was valued at $12 billion.
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Snowflake's 10% rally on Tuesday helped propel the stock to a market valuation of more than $120 billion, surpassing the likes of tech behemoths IBM and AMD.
Snowflake is a cloud-data storage firm that debuted to the public in a September IPO, pricing its shares at $120. The firm raised $3.4 billion at a valuation of $33 billion in its IPO, making it the largest software IPO in history.
As of Tuesday's intraday high of $429, Snowflake had staged a 258% rally since going public. Snowflake was valued at just $12 billion in February when it completed its last private funding round, meaning those investors have registered a 10 times gain if they held their shares through today.
For context, IBM currently has a market capitalization of $112 billion, while AMD is worth $111 billion.
Snowflake's first public earnings report earlier this month revealed triple digit revenue growth for the company, though the firm is not yet profitable.
According to data from YahooFinance, average analyst estimates expect Snowflake to record $579 million in revenue for the full year. IBM is expected to generate $74 billion in revenue this year, while AMD is expected to do $9.5 billion in revenue this year, according to analyst estimates.
