How to buy stock in Snowflake (SNOW)

Snowflake is now available to buy, having gone public with a record breaking IPO.

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After going public on 16 September, cloud-based tech company Snowflake is now available to buy on the UK’s major share dealing platforms.

Snowflake is one of a growing number of tech companies that have gone public in 2020.

Read on to find out how you can get your hands on some Snowflake shares.

How to buy shares in Snowflake

  1. Choose a platform. If you’re a beginner, our share-dealing table below can help you choose.
  2. Open your account. You’ll need your ID, bank details and national insurance number.
  3. Confirm your payment details. You’ll need to fund your account with a bank transfer, debit card or credit card.
  4. Search the platform for stock code: SNOW in this case.
  5. Research Snowflake shares. The platform should provide the latest information available.
  6. Buy your Snowflake shares. It’s that simple.

Compare online trading platforms

To buy Snowflake stock, you’ll need to open a trading account. Compare the UK’s leading investment platforms using the table below to find the best fit for you.

Table: sorted by promoted deals first
Data indicated here is updated regularly
Name Product Price per trade Frequent trader rate Platform fees Brand description
Fineco
£2.95
£2.95
Zero platform fee
Fineco Bank is good for share traders and investors looking for a complete platform and wide offer. Your first 50 trades are free with Fineco, until 30/09/2020. T&Cs apply. Capital at risk.
IG
0% commission on US shares, and £3 on UK shares
From £5
£0 - £24 per quarter
IG is good for experienced traders, and offers learning resources for beginners, all with wide access to shares, ETFs and funds. Capital at risk.
Hargreaves Lansdown Fund and Share Account
£11.95
£5.95
No fees
Hargreaves Lansdown is the UK's number one platform for private investors, with the depth of features you'd expect from an established platform. Capital at risk.
eToro Free Stocks
0% commission, no markup, no ticket fee, no management fee
N/A
Withdrawal fee & GDP to USD deposit conversion
Capital at risk. 0% commission but other fees may apply.
Interactive Investor
From £7.99 on the Investor Service Plan
From £7.99 on the Investor Service Plan
No transfer fees or exit fees. £9.99 a month on the Investor Service Plan
Interactive Investor offers everything most investors need. Its flat fees makes it pricey for small portfolios, but cheap for big ones. Capital at risk.
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Compare up to 4 providers

All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Capital is at risk.

What we know about the Snowflake IPO

On 24 August, Snowflake filed an S-1 with the U.S. Securities and Exchange Commission. It plans to list its Class A common stock on the New York Stock Exchange under the ticker symbol “SNOW”.

The suggested share price is $100 to $110 and the deal is being underwritten by Goldman Sachs, J.P. Morgan and Citigroup, among others. It’s expected to go live on 16 September.

Once Snowflake’s stock goes live, investors interested in purchasing shares must be ready with a brokerage account.

What we know about Snowflake’s balance sheet

Snowflake raised $450 million in its Series F funding round in 2018 and another $479 million in its Series G earlier this year. Its most recent valuation sat at a sizable $12.5 billion.

So, what does the company’s balance sheet look like following the influx of capital?

Snowflake reported $96.6 million in revenue for fiscal 2019 followed by $264.7 million in revenue for fiscal 2020. Snowflake is growing, that much is clear. But whether it’s profitable is a different story. Snowflake reported net losses of $178 million in 2019 and $348.5 million in 2020.

But here’s the good news: Snowflake’s losses are falling. In Q2 2019, the company reported a net loss of $177.2 million, while in Q2 2020, net losses sat at $171.2 million. And the company reported 121% year-over-year growth for Q2, a promising figure for interested investors.

Snowflake investment risks

Snowflake competes with the likes of Amazon Web Services, Microsoft Azure and Google Cloud. And complicating this already competitive landscape is the fact that Snowflake actually relies on its competitors for storage and computing power.

CNBC reports that 85% of Snowflake’s workloads are housed on Amazon Web Services, with the other 15% split between Microsoft Azure and Google Cloud. It’s not easy to undercut and outperform a competitor when you rely on them to keep you in business.

The bottom line is that Snowflake isn’t the only company trying to capitalise on the shift from traditional data storage to the cloud. There are some big-name players on the field and competition in the tech sector is notoriously fierce.

Snowflake compared

Snowflake is a cloud-based platform that helps businesses securely house and analyse their data. It was founded in 2012 and is headquartered in San Mateo, California. It has over 3,000 customers, 56 of which are accounts worth over $1 million, including Cisco and Capital One. The platform facilitates over 500 million queries daily.

Snowflake is not an accredited business with the Better Business Bureau (BBB) from which it receives an F rating for failing to respond to a complaint.

How are similar stocks performing?

Snowflake is frequently compared to Apple, Amazon and Google, but these companies do much more than cloud-based data storage. Companies that exclusively focus on the type of service Snowflake offers include Cloudera, Teradata and MongoDB, but these companies haven’t been performing as well. Examining these competitor stocks can help you gauge how the market is doing but aren’t a direct indicator of how Snowflake will perform. Select a company to learn more about what they do and how their stock performs, including market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield. While this list includes a selection of the most well-known and popular stocks, it doesn't include every stock available.

This article offers general information about investing and the stock market, but should not be construed as personal investment advice. It has been provided without consideration of your personal circumstances or objectives. It should not be interpreted as an inducement, invitation or recommendation relating to any of the products listed or referred to. The value of investments can fall as well as rise, and you may get back less than you invested. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please get financial advice.. The author holds no positions in any share mentioned.

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