(Bloomberg) — Snowflake Inc.’s initial public offering isn’t just creating new fortunes, it’s adding to the wallets of some of Silicon Valley’s biggest names.
Iconiq Capital, a multifamily office whose clients include Facebook Inc.’s Mark Zuckerberg, LinkedIn Corp.’s Reid Hoffman and Twitter Inc.’s Jack Dorsey, took part in multiple Snowflake funding rounds beginning in 2017. Its 12% stake in the company, purchased for $245 million, is now worth more than $4 billion.
At its initial offering price of $120 a share, the cloud-computing company is worth $33.3 billion, more than Twitter and almost tripling the $12.4 billion it was valued at in a February fundraising round.
Cloud computing “is a secular trend right now,” said Bloomberg Intelligence analyst Mandeep Singh. “We have already seen Zoom, DocuSign and Datadog do well this year. Investors understand the cloud business model well and that makes a high-growth company like Snowflake attractive.”
The San Mateo, California-based firm’s top executives are also poised to see their wealth surge. Four of them — Frank Slootman, Robert Muglia, Michael Scarpelli and Benoit Dageville — together own stakes worth $3.7 billion.
Only one of them, Dageville, was a founder. His stake is smaller than Slootman’s, who joined as chief executive officer from ServiceNow Inc. last year.
Concurrent with the IPO, former CEO Muglia is selling half of his 8.1 million Snowflake shares to Berkshire Hathaway Inc., which is also investing an additional $250 million at the IPO price. Such deals aren’t typically part of Warren Buffett’s play book, although in 2018 Berkshire invested in the initial offering of Brazilian fintech StoneCo Ltd.
Buffett’s move has boosted the already sky-high institutional interest in the cloud-computing firm, Singh said. It “definitely validates the attractiveness of Snowflake’s IPO,” he said.
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Football-sized chunks of ash rain down on Bay Area as California wildfires rage
Photos from California residents show apocalyptic scenes as chunks of ash the size of footballs and burnt leaves rain down on Bay Area neighborhoods.
“It was probably the size of my face,” Morgan Balaei, a Santa Rosa resident, told the San Francisco Chronicle after she discovered what she originally thought was a toupee on the side of the road in her neighborhood on Monday.
It was actually a chunk of ash, bigger than she had ever seen before in her years of living in Sonoma County, according to the Chronicle.
“I could hear it landing on my car,” said Balaei, according to CNN.
The ash is likely a result of the Glass Fire in Northern California, which has burned more than 36,000 acres in less than two days, The Sacramento Bee reported. Although Balaei has seen some nasty wildfires in her time as a California resident, she says she’s never seen anything quite like this.
“I find this fire different with regards to the amount of ash and the fact that you see a lot of burnt leaves among it,” she said, according to KFI.
Satellite images from the Bay Area’s National Weather Service show smoke from the Glass Fire blowing west.
Satellite showing the smoke from the Glass Fire in the North Bay but note the August Complex and other fires in NorCal continue to pump a lot of smoke offshore at this time. Warm temps all week wont bring much relief. #GlassFire pic.twitter.com/RCqVdxYfLF
— NWS Bay Area (@NWSBayArea) September 29, 2020
Balaei’s neighborhood is not under a mandatory evacuation despite the unsettling situation, according to CNN. Several other Bay Area residents posted photos of ash that resemble snow flurries covering their yards.
A Santa Rosa resident referred to the size and amount of ash seen at sunrise on Sept. 28 as “daunting” in a tweet. A Bay Area meteorologist tweeted that “extensive ash falling” in Santa Rosa is from the Shady Fire.
Emma Roberts Is in a New Netflix Holiday Rom-Com, and It Looks Delightful
Emma Roberts is here to kick off holiday movie season and not a minute too soon given the way 2020 has played out. We need some charm, romance, and happily-ever-after moments now more than ever, right?
Netflix just released the trailer for Holidate, which stars Roberts, Luke Bracey, Jessica Capshaw, Kristin Chenoweth, and Frances Fisher. Check out this synopsis and tell us you’re not excited:
“Sloane (Roberts) and Jackson (Luke Bracey) hate the holidays. They constantly find themselves single, sitting at the kids table, or stuck with awkward dates. But when these two strangers meet one particularly bad Christmas, they make a pact to be each other’s ‘holidate’ for every festive occasion throughout the next year. With a mutual disdain for the holidays, and assuring themselves that they have no romantic interest in the other, they make the perfect team. However, as a year of absurd celebrations come to an end, Sloane and Jackson find that sharing everything they hate may just prove to be something they unexpectedly love.”
As you’ll see in the trailer, many shenanigans ensue on the way to finding true love, including a Dirty Dancing lift moment that doesn’t go exactly as planned; meddling families; and, as always with this type of movie, a few rounds of miscommunication about feelings. We simply love to see it.
Watch the full trailer, below.
Along with Emma Roberts, national treasure and forever icon Dolly Parton is also teasing a holiday movie of her own on Netflix: Christmas on the Square. “#ChristmasOnTheSquare is more than just a song…it’s also a musical!” she wrote on Instagram. “Watch my newest movie, directed by @therealdebbieallen and starring Christine Baranski, @jeniferlewisforreal and so many other talented folks, November 22 on @netflixfamily ❤️”
Bring on all the low-key corny (but totally delightful) holiday fun you can, Netflix, Hallmark, and every other streaming platform on the planet. We’ve never needed it more.
Originally Appeared on Glamour
Hedge Funds Have Never Been This Bullish On Smith & Wesson Brands, Inc. (SWBI)
The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 823 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of June 30th, when the S&P 500 Index was trading around the 3100 level. Stocks kept going up since then. In this article we look at how hedge funds traded Smith & Wesson Brands, Inc. (NASDAQ:SWBI) and determine whether the smart money was really smart about this stock.
Smith & Wesson Brands, Inc. (NASDAQ:SWBI) was in 24 hedge funds’ portfolios at the end of the second quarter of 2020. The all time high for this statistics is 22. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. SWBI shareholders have witnessed an increase in enthusiasm from smart money lately. There were 22 hedge funds in our database with SWBI positions at the end of the first quarter. Our calculations also showed that SWBI isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings and see the video for a quick look at the top 5 stocks). Video: Watch our video about the top 5 most popular hedge fund stocks.
To the average investor there are many metrics shareholders can use to analyze their holdings. A pair of the most innovative metrics are hedge fund and insider trading moves. We have shown that, historically, those who follow the top picks of the elite fund managers can trounce the S&P 500 by a very impressive amount (see the details here).
Noam Gottesman of GLG Partners
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, legal marijuana is one of the fastest growing industries right now, so we are checking out stock pitches like “the Starbucks of cannabis” to identify the next tenbagger. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website to get excerpts of these letters in your inbox. Keeping this in mind let’s go over the latest hedge fund action regarding Smith & Wesson Brands, Inc. (NASDAQ:SWBI).
Hedge fund activity in Smith & Wesson Brands, Inc. (NASDAQ:SWBI)
At Q2’s end, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 9% from the first quarter of 2020. The graph below displays the number of hedge funds with bullish position in SWBI over the last 20 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Smith & Wesson Brands, Inc. (NASDAQ:SWBI) was held by Renaissance Technologies, which reported holding $80.9 million worth of stock at the end of September. It was followed by Arrowstreet Capital with a $20.4 million position. Other investors bullish on the company included Citadel Investment Group, Two Sigma Advisors, and D E Shaw. In terms of the portfolio weights assigned to each position Blue Grotto Capital allocated the biggest weight to Smith & Wesson Brands, Inc. (NASDAQ:SWBI), around 2.17% of its 13F portfolio. G2 Investment Partners Management is also relatively very bullish on the stock, earmarking 1.37 percent of its 13F equity portfolio to SWBI.
As one would reasonably expect, some big names were breaking ground themselves. G2 Investment Partners Management, managed by Josh Goldberg, assembled the most valuable position in Smith & Wesson Brands, Inc. (NASDAQ:SWBI). G2 Investment Partners Management had $5.8 million invested in the company at the end of the quarter. Blair Baker’s Precept Capital Management also made a $3 million investment in the stock during the quarter. The other funds with brand new SWBI positions are Noam Gottesman’s GLG Partners, Mark Broach’s Manatuck Hill Partners, and Crispin Odey’s Odey Asset Management Group.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Smith & Wesson Brands, Inc. (NASDAQ:SWBI) but similarly valued. We will take a look at Banco Macro SA (NYSE:BMA), Veoneer, Inc. (NASDAQ:VNE), Compugen Ltd. (NASDAQ:CGEN), EnLink Midstream LLC (NYSE:ENLC), Amerisafe, Inc. (NASDAQ:AMSF), Perficient, Inc. (NASDAQ:PRFT), and BrightView Holdings, Inc. (NYSE:BV). All of these stocks’ market caps resemble SWBI’s market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position BMA,11,77409,3 VNE,14,99577,3 CGEN,9,95289,1 ENLC,7,13998,0 AMSF,12,39039,3 PRFT,21,61424,0 BV,18,173980,10 Average,13.1,80102,2.9 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 13.1 hedge funds with bullish positions and the average amount invested in these stocks was $80 million. That figure was $144 million in SWBI’s case. Perficient, Inc. (NASDAQ:PRFT) is the most popular stock in this table. On the other hand EnLink Midstream LLC (NYSE:ENLC) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Smith & Wesson Brands, Inc. (NASDAQ:SWBI) is more popular among hedge funds. Our overall hedge fund sentiment score for SWBI is 87. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 10 most popular stocks among hedge funds returned 41.4% in 2019 and outperformed the S&P 500 ETF (SPY) by 10.1 percentage points. These stocks gained 21.3% in 2020 through September 25th and still beat the market by 17.7 percentage points. Unfortunately SWBI wasn’t nearly as popular as these 10 stocks and hedge funds that were betting on SWBI were disappointed as the stock returned -3.7% since the end of the second quarter and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 10 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.
Get real-time email alerts: Follow Smith & Wesson Brands Inc. (NASDAQ:SWBI)
Disclosure: None. This article was originally published at Insider Monkey.
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