Shares of Snowflake, a maker of cloud computing software, soared yesterday after its initial public offering. The stock closed at $253, more than double the $120 the price at which the company and its bankers initially valued them.
The stock is trading 6% lower this morning, and there’s a good bet Snowflake will (ahem) fall gently back to earth today. That’s been the pattern for other recent high-profile venture-capital backed IPOs. After a rush of investor interest the day of the IPO, traders tend to sell off shares for a quick profit on day two.