Australians are going crazy for a new stock in the United States that has the backing of Warren Buffett’s investment company.
Technology company Snowflake Inc (NYSE: SNOW) debuted on Wall Street late Wednesday night Australian time.
The shares immediately doubled in price after retail investors realised Buffett’s Berkshire Hathaway Inc (NYSE: BRK.A) (NYSE: BRK.B) bought US$250 million worth during the initial public offering (IPO).
This was reportedly the first time Buffett or his company purchased in an IPO since Ford Motor Company (NYSE: F) in 1956.
And Snowflake became the largest company to ever double its share price in its first day on the US market.
But it wasn’t just in America investors went mad for Snowflake. The fever transmitted across the Pacific Ocean too.
Share trading platform Stake reported Friday that Australians buying shares of the data warehousing provider doubled in just 24 hours.
The value of transactions for Snowflake on Friday morning was a stunning 5700% more than another popular tech stock, Uber Technologies Inc (NYSE: UBER).
It was also 776% more than Slack Technologies Inc (NYSE: WORK).
“As a business-to-business enterprise providing database solutions, the company is not widely known outside of tech circles, although it does compete with the likes of Amazon and Microsoft,” said Stake chief executive Matt Leibowitz.
“Aussie investors are clearly clued into what is happening in overseas markets, even more than their local market.”
All up more than $1 million worth of transactions went through Stake on Thursday morning for Snowflake, then another $1.38 million on Friday morning.
Snowflake shares did lose their momentum on Friday morning and lost more than 10% to hit US$227.54. But that’s still 90% higher than the IPO price of US$120.
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Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Berkshire Hathaway (B shares) and Slack Technologies. The Motley Fool Australia's parent company Motley Fool Holdings Inc. recommends Snowflake Inc. and Uber Technologies and recommends the following options: short January 2021 $200 puts on Berkshire Hathaway (B shares) and long January 2021 $200 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares) and Slack Technologies. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.