Tag: Snowflake

The Valuation Circus Is In Town

The Valuation Circus Is In Town

We recently wrote about the "Speculation Era" in Tech stocks. It doesn't have to be this way. Institutional investors don't have a gun to their heads forcing them to chase performance in companies such as TSLA and SNOW. Yet many are doing just that, throwing time-tested investment principles out the window. Many justify their outrageously … Continue reading The Valuation Circus Is In Town

Time to Spin-Off AWS, Azure and GCP

Time to Spin-Off AWS, Azure and GCP

Given Snowflake's rich valuation, it may be time for Alphabet, Amazon and Microsoft to spin-off GCP, AWS and Azure. Snowflake priced its IPO yesterday and the stock closed up 112% to $253.93 for a valuation of approximately $70 billion. Assuming calendar year 2020 revenue of $500 million implies a MV/Revenue multiple of 140x. The combination … Continue reading Time to Spin-Off AWS, Azure and GCP

The Tech Stock Speculation Era

The Tech Stock Speculation Era

When it comes to Technology stocks we are firmly in the Speculation Era. It is likely to stay that way for the near-term. October earnings calls may provide a bump in the road. Looming corporate tax increases will likely put an end to the bubble. The combination of Trump tax cuts and the recent fiscal … Continue reading The Tech Stock Speculation Era