Databricks Stock Upside
Hi, Any thoughts on the upside of databricks stock ? What is the secondary market price of the stock Current TC: 600k at Facebook Interviewing for a non tech Director
I can see them 5x in 5 years. For context, Snowflake is already 3 times the size of Databricks and growing rapidly.
According to https://techcrunch.com/2021/08/31/databricks-raises-1-6b-at-38b-valuation-as-it-blasts-past-600m-arr/ databricks is clocking 600M ARR at 75% growth rate so it is probably fair to say it is half the size of SNOW currently but still growing slower than SNOW which is doing 110% growth rate per its last quarterly results. I think there is probably a 50% upside IF databricks does a snowflake in the next year or so. A lot actually also depends on the market at the time. With inflation going crazy fed may step in and raise rates which could spoil the party for all these high growth stocks.
3x-5x is doable in the short term (<= 3 years), beyond that it's anyone's guess at the moment
I wouldn’t expect an IPO pop given their current valuation. Longer term outcomes are anybody’s guess. AWS, Azure, and Google have large teams to run the same software (with their own private enhancements) as a service in a highly integrated manner, at a much lower cost, and with a superior SLA. I find it hard to see why large enterprises would chose Databricks over native and better supported offerings from the cloud providers.
So why are people choosing them for a 600M ARR? There must be some advantage to use their product.
I have no vested interest here, but agree with the other amazon guy. 600M is nice but small compared to cloud provider revenues. It also likely includes pass-through of cloud provider fees for storage and compute to their customers, which makes it less impressive. They also have very many highly paid salespeople who push their offering thereby driving ARR by likely running up big losses and burning VC $.
OP what did your offer look like? Did they match your $600k? I’m interviewing for a non-tech Director too and They’re pushing back on matching my current $500k.
lot of upside left. do it