28b $177 RSU price I do understand that the word pre-IPO itself is tempting. Maybe that’s why lots of people think it is great. But is it guaranteed to go up after IPO? It seems everyone thinks it will be same as snow. I’m pretty new to investment and just curious why the similar company’s IPO market cap must match snow - 60b. Although they are in similar business, shouldn’t different companies valuation/market cap be independent? Like Intel has different market cap with AM TC: 250k
It is all about risk. Look at Airbnb stock, not so hot anymore. Rivian asking ipo price is really high.
Yeah I’m just wondering why people think snow is 60b so Databricks has to be 60b. Did I miss anything?
That's just lazy. Revenue and rev growth rate will be the big driving factors for valuation. Snowflake revenue was around $600M in 2020 and valuation is around $70B. I saw estimates of $425M run rate for databricks in 2021. So IPO valuation could be close to Snow if by then they reach that revenues and keep their growth rate. No one can really predict how the market will be at that time. There could be a broader correction or the markets might continue to be hot, which will also affect valuations. Anyone's guess at this point.
I am joining them in a week. You can dm me, if you want to understand my decision.
Can I DM?
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Nothing is guaranteed.