I think part of it is that many know that most companies under perform the market. So I imagine it's not hard to see someone justifying (correctly or incorrectly) that its worth paying more for a company you think is more likely going to be one of those outliers. and being that there is a limited supply of these companies, they can shoot up in value fast.
I never used snowflake, so hard for me to have a solid opinion of this company. I remember when facebook IPO'ed and people were like 'what? worth 100 billion? OVERVALUED'. and they were wrong in every way. so who knows? Though my gut doesn't tell me this company is the next facebook. coming out of the gate with a 70 bil market cap feels like all the growth is already priced in.
With facebook and on their IPO, I felt just their mobil revenue in 5 years time alone would be worth their valuation. But I had week hands. I think I bought them at 28 and sold at 22. I should have had more conviction because I truly did believe they were worth a lot more.
I never used snowflake, so hard for me to have a solid opinion of this company. I remember when facebook IPO'ed and people were like 'what? worth 100 billion? OVERVALUED'. and they were wrong in every way. so who knows? Though my gut doesn't tell me this company is the next facebook. coming out of the gate with a 70 bil market cap feels like all the growth is already priced in.
With facebook and on their IPO, I felt just their mobil revenue in 5 years time alone would be worth their valuation. But I had week hands. I think I bought them at 28 and sold at 22. I should have had more conviction because I truly did believe they were worth a lot more.