Warren Buffett and Marc Benioff are bullish on Snowflake
The demand for the cloud computing company’s stock was so strong, primarily due to the fact that Warren Buffett, the billionaire investor and CEO of Berkshire Hathaway, is one of the largest investors of Snowflake.
Last week, Snowflake disclosed that Buffett’s Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) will acquire $320 million worth of SNOW shares from a stakeholder in a secondary transaction, bringing its total investment to $570 million.
Take note that that this is the first time that Buffett’s conglomerate bought a new stock offering. The move means that the Oracle of Omaha believes that Snowflake can deliver significant returns to shareholders over the long term. In other words, SNOW stock is a winner.
Aside from Buffett, Salesforce.com (NYSE: CRM) CEO Mark Benioff is also bullish on Snowflake. His company bought $250 million worth of SNOW shares in a private placement immediately after the cloud computing company’s IPO.
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