Hi @Davidā¦ any chance you could look at the stop level? Trying to get a stop of 10% but it wonāt let me as ātoo far away from the market priceāā¦?
I canāt add Snowflake to a pie, does anyone know why this would be?
The spread on the Snowflake CFD is very tight. Itās tighter than all the big boys like Tesla etc. In fact itās probably the best spread Iāve ever seen on the platform.
Why is it so tight on Snowflake?
Not complaining. Tighter spread = good.
Just trying to understand how T212ās spread system works. Iām used to seeing some of the worst spreads in the universe. Did they relax the spread just for this IPO?
Probably the high volume - sure I saw someone from 212 say somewhere that volume is a big part of their spread.
Iāve seen that explanation which is why Iām confused. Tesla has higher volume.
This is why I wish people would understand what a CFD actually is. It is purely a derivative that tracks an underlying price. It has nothing to do with the physical stocks actual availability on a platform.
The stock was traded, its price did move and you entered a contract based on that price.
It has nothing whatsoever to do with the availability of the stock to purchase through T212 investing.
Iām not sure why you seen it at 160 and sold short, then you say it opened at 200?
My understanding is that the price was moving from 80 and open to institutional buyers, or at least they were routed first, in which case the CFD contract would be valid, provided you had the option to get out of it as the price moved.
IPOās and CFDās together is akin to playing in a casino IMO.
Iād be very interested to see the outcome on this, and hopefully you used sensible amounts and didnāt smoke your account.
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SNOW Spread wasnāt as tight before close. I donāt think its suppose to make sense.
One reply from staff/Peter was: Yes, the spread is adjusted dynamically by mechanisms that react on market movement and incoming data - the logic being followed is universal for all the instruments - raw spread gets an X% mark-up and outputs the spread that you see and can trade on.
@GaryS I agree as i understand what a CFD is however the stock should be available to the public, and on T212 platform for a customer to purchase, even as a CFD user. SNOW wasnāt available, neither did it launch to the public at $160.
The stock was suppose to be deemed as āTemp suspendedā (unable to purchase), which occurred at a later time.
The price didnāt open to institutional buyers at $88 (the company put up the price before launch), it was approx $120, then rose to approx $267 when it opened on retail platforms. As CFD isnāt real stock (so no ownership issue), it would be good practice to refund. (in my opinion). Like you iām interested to hear the outcome.
@Talbotsunbeamer thereās someone i believe has/still works within the industry so might be worth sending him a message, his profile name is @Finki (he spotted the NIO in the ISA issue).
The CFD platform initially set SNOW at $160 buy and $155 sell as a starting point. I always had the intention of shorting the launch price (within reason) and so assumed it was up and running.
The order was accepted but within seconds the service was suspended again. I never had the option to get out of it - I couldnāt terminate, set stop losses or anything until the official launch which notified me at around $287.
The loss isnāt significant but there is obviously a matter of principle. I was completely locked in once the order was accepted.
Iām betting T212ās greater concern will be any buyers who got in whilst the door was temporarily open. Any reasonable players must have made an absolute killing.
@Hectares thank you for the heads up. Iāve sent a query to T212 so will give them the opportunity to investigate first.
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If the service was suspended then that is BS. If the order is accepted, the price should be updated live with full access to get out of the position on a cfd.
If it was a stock itās a different story, but a cfd is basically on their platform, their control.
I was hoping to buy it around $120 but i knew it wasnāt going to happen. There was so much hype on Snowflake that they hold it until the price went higher. Then release it to us at a higher price
Hi everyone, not trying to say you should or shouldnāt purchase this stock, but thought I would share this article in case anyone hasnāt seen it.
I thought it has some useful insights and talks of things that I hadnāt considered. Hopefully you find it useful too
https://seekingalpha.com/article/4374811-evaluating-24b-snowflake-ipo-silicon-valley-engineer
I considered this. But then Facebook and Zoom did not posess a moat of any sort. Why use zoom when every other service offers video conference calling. Why bother with Facebook, Myspace was way more customisable.
Snowflake is similar in my opinion. Developers at companies are using Snowflake. Forget about profitability and all that. This is tech growth.
Edit: I do not directly hold any Facebook or Zoom shares.
Iām software engineer working the last 5 years exclusively with cloud solutions and had never heard about Snowflake until few weeks ago.
They do have some ābig namesā as customers but to be honest I donāt see nobody on my communities/Twitter talking about this company.
I will wait to see, my bet now is that it will easily drop 20% in few weeks.
Can the same not be said for Facebook and Zoom also though? Nobody had heard of it until they did. Also, Iām sure it will drop, IPOs tend to. But honestly that doesnāt matter much. If you could buy Facebook or Zoom at IPO price, it wouldnāt bother me.
Edit: The only thing I might regret is the opportunity cost by not buying more Tesla instead.
100% no.
Facebook was already a giant on 2012 when they did the IPO and by the data of the competitors, was pretty clear that its dominance was solid.
Zoom was a mix of time and opportunity, I donāt like it as a software company but their product is being kind of unique this whole year, only just a few weeks ago that competitors started to catch up and even tho its user base is still growing.
Snowflake is a promise, like any other start-up that you really have to believe that it will grow exponentially not looking to their current numbers, that might not support this belief.
The Seekingalpha article has good insights, Iām very sceptical on some start-ups and tech companies until they really show some disruptive product/technology, and I donāt see it yet on Snowflake.
Cheers.
A promise of what though? Profitability? I said that doesnāt matter. Twitter was only profitable a few years ago.
At the time it was ludicrous to invest in Facebook. They had no clear route to profitability. With no unique usp.
I also donāt mean any offence, and the reason I didnāt bring it up earlier is because itās very anecdotal. I have a friend in the US who has worked for CapitalOne and currently works for Amazon. He has used snowflake while at CapitalOne. Perhaps the reason you have not heard of it is because the UK is not very good at keeping up with new software solutions. We are just behind in the latest tech most of the time.
Laughs from Ireland
Feel free to laugh. People laughed when I bought Tesla.
Maybe I am uneducated on ZM, but what is unique about their platform?
CSCO has Webex, MSFT has Teams.
What is ZM competitive advantage, against them? Afaik founder of ZM is founder of Webex, before it got sold to CSCO.
Here is why I think the users have differentiated Zoom and Snowflake from their ācompetitorsā. Zoom is fully focused on simple communication and teleconferencing. It is precisely because CISCO has Webex and Microsoft has Teams that Zoom is successful. The whole company is dedicated to making communication better for business/education whatever. For MSFT and CSCO itās just an operating arm.
Forget about valuation metrics. Nothing is valued correctly or everything is, so why try to guage itās āvalueā. I donāt own Zoom stock. But I did buy SNOW.