This Is Snowflake's Key Competitive Advantage

Cloud-based data warehouse company Snowflake (NYSE: SNOW) was the hottest IPO of the year and a very popular buy among hedge funds in the third quarter. When I say "hot," that's actually an understatement. After initially pricing at $80, demand was so high that the pre-trading share price moved up to $120. By the time shares hit the market, they were 100% higher than even that nosebleed figure.

As of Nov. 23, Snowflake has held those gains, with shares trading around $270 per share, a market capitalization of $74 billion, and a price-to-sales ratio of 142. That's higher than even the most expensive software-as-a-service stocks. What could possibly justify this?

Snowflake has many fine attributes, but funds willing to pay up for shares today likely recognize this one key competitive advantage.

Source Fool.com