If You Bought Snowflake at Its IPO, You’re Still Down 41% More Than 5 Years Later

By Trey Thoelcke Published Apr 22, 8:45AM EDT

Quick Read

With Warren Buffett’s blessing, Snowflake (SNOW) had one of the largest software IPOs in history. In the years that followed, the business kept growing but the stock did not.
The business remains compelling, but valuation is still a key risk factor for prospective investors.

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

If You Bought Snowflake at Its IPO, You’re Still Down 41% More Than 5 Years Later — © LumiNola / E+ via Getty Images

The Most Hyped Software IPO in a Generation

Snowflake (NYSE: SNOW | SNOW Price Prediction) went public on September 16, 2020, and it was an event. Warren Buffett’s Berkshire Hathaway participation made it a headline moment for retail investors, who saw the Oracle of Omaha’s blessing as a green light. It was one of the largest software IPOs in history at the time, priced at a valuation assuming years of flawless execution. The first-day close of $253.93 reflected peak enthusiasm for cloud software in a zero-interest-rate world.

Then reality arrived. Starting in 2022, rising interest rates crushed high-multiple growth stocks. Snowflake, trading at triple-digit revenue multiples, was hit especially hard. The SaaS segment correction hit the entire category, but IPO buyers absorbed the full weight. The business kept growing, but the stock did not.

Down 41% While the Business Grew 29% Last Year

Here is what a $1,000 investment returned at different entry points.

	Total Return	Current Value
Since IPO	−40.7%	$594
5 Years	−34.8%	$651
1 Year	+10.1%	$1,101

The one-year picture is positive, but the IPO buyer is still sitting on a 40.7% loss after more than five years. The business delivered $4.684 billion in FY2026 revenue, up 29.16% year over year, with 125% net revenue retention and $9.77 billion in remaining performance obligations. While the company executed, the IPO price simply left no room for error.

Entry Price Matters

The AI data cloud thesis, if it plays out over three to five years, represents the core bull case for the stock. Over 9,100 accounts are already using Snowflake AI features, and 45 of 51 analysts rate it a Buy or Strong Buy with an average price target of $234.44. Entering near $150 a share is fundamentally different from entering at $253.

The valuation remains a key risk factor for prospective investors. At a forward P/E of approximately 121x, the stock demands continued perfection. GAAP losses remain at −$1.329 billion for FY2026, and stock-based compensation hit $423 million in Q4 alone. A great company at the wrong price can cost you years.

For retirement investors, entry price is the thesis. Snowflake the business is compelling. Snowflake at $253 in September 2020 was a bet that nothing could go wrong, and that bet has not paid off.

About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.