Should You Buy Snowflake Stock?

Shares of cloud-native data management company Snowflake (NYSE: SNOW) opened on the New York Stock Exchange with a bang on Wednesday. Trading started at $245 per share, despite being priced at $120 just one day earlier.

This opening price gave the cloud software specialist a market capitalization of about $68 billion -- an extraordinary valuation for a company with trailing-12-month revenue of just $403 million. Indeed, even Warren Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) is on this investment.

What should investors make of the market's excitement for Snowflake? Is Snowflake stock a buy?

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Source Fool.com