In this video, host Eddie provides a rapid commentary on Snowflake's landmark IPO. He outlines the $3.4 billion raise that valued the cloud data platform at $33 billion, noting that the IPO price was set around $120 but opened near $235‑$240, implying a market cap of roughly $66 billion—double the initial expectation and twice Twitter's valuation. Eddie highlights major strategic investors: Berkshire Hathaway’s $735 million stake, Salesforce’s $250 million purchase, and Iconiq Capital’s 12% holding now worth over $4 billion. He contrasts the soaring cloud index (+60% YTD) with the struggling Russell 2000 (‑8% YTD), framing the IPO as a symptom of heightened tech appetite amid pandemic‑driven remote work. The host also discusses retail trader dynamics, especially Robinhood’s call‑option buying surge, dealer hedging of short delta/gamma exposure, and the resulting momentum that hedge funds are poised to ride. The video concludes by emphasizing the massive upside for early investors and those allocated shares in the IPO.
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Hey guys, Eddie here with another video. Today we're going to be discussing the recent IPO, Snowflake. So this is a cloud data platform and it's raised an icy cool $3.4 billion. This actually valued the company at $33 billion. So not a small sum by any means. This is the largest IPO year to date and actually the largest ever for a US software company. So originally it was indicated to come out and start trading at around $120. Snowflake originally priced above the expected range of around $100 to $110, and that $100 to $110 had already increased by about 25% pre-IPO as Snowflake got some investors on board and caught the attention of Berkshire Hathaway. Berkshire Hathaway, Warren Buffett's firm, is investing $735 million into Snowflake. And Salesforce also won a piece of the action. They're purchasing $250 million. So it's really interesting to see Warren Buffett actually trying to— well, definitely getting a piece of this kind of new era tech company. Obviously, this year he's had a huge win with Apple, another tech company, obviously, but he's been kind of on the roll wrong side of a few airlines and things like that that have been widely reported. And this is just really a sign of the times. Look, the emerging cloud index is up around 60% year to date, and that is already 2 times as, 2 times higher than the NASDAQ return, which is already a tech-heavy index. So in contrast, as we know, the real economy suffering and indices like the Russell 2000, which are more tied to that real economy, you know, with sectors like energy, uh, and let's say regional banks as an example, they're really suffering. They're down about 8% year to date. But this IPO really is indicating, uh, the insatiable appetite, uh, for tech names, uh, amidst, amidst this, uh, pandemic, um, as work from home becomes, you know, a more normal theme and the virtual world or portions of it, you know, really take precedent Um, but the news has just come out that actually Snowflake is going to start trading at around $235 billion. Okay, so double what it was expected and indicating to open at, um, which is crazy. And that would indicate a market cap of around $66 billion. That is 2 times as big as Twitter, as reported by ZeroHedge, which is insane. A real interesting kind of, uh, stat. Iconiq Capital, it's a multi-family office. They have clients like Facebook's Mark Zuckerberg, Twitter's Jack Dorsey, and they took part in multiple Snowflake funding rounds beginning in 2017. It has a 12% stake in Snowflake, and it purchased that for around $245 million. Okay. This is now worth more than $4 billion. Okay, if it IPO'd at the indicated range it was meant to, now this is worth something like $8 billion if it indeed does open at around $235. So just insane gains. And you've got to think that this is also, you know, capturing the imagination and creativity of the Robinhood traders more, more kind of widely. I'm talking about the retail retail traders. Um, so we've obviously seen this call option bonanza where we've seen, you know, lots of volume coming through with really close to expiry call buying, which is leading to dealers rushing to cover their short delta and gamma exposure. And then this flow and the dealer hedging where they then have to go and buy stocks is causing, you know, a huge amount of momentum up, um, in these kind of tech names specifically. And of course you've then got the hedge funds kind of circling, uh, and you making use of that data, and no doubt they will be riding that momentum upwards. So, um, yeah, the— just wanted to get on the mic, uh, and discuss this. SNOW is indicated to open at around 235 to 240 $40. So, um, gotta, gotta love it if you're an early investor in Snowflake, but also if you've got an allocation to that IPO. So hope you enjoyed that short video. Take care.
