Technology
Cloud Stock Mania Comes With Eerie Echoes of Dot-Com Boom and Bust
Sure, there’s a compelling explanation for Snowflake’s blockbuster IPO and similar success stories. But haven’t we seen this movie before?
This article is for subscribers only.
This year will be remembered as a terrible time for the economy, with a few exceptions. Cloud computing is one.
The blockbuster $3.4 billion stock market debut of Snowflake Inc. stands out as a prime example of the industry’s success despite a bleak economy. The cloud-data company more than doubled its share price in its first day of trading, on Sept. 16. The same day, another cloud computing company, JFrog Ltd., raised more than $500 million in its initial public offering. A global exchange-traded fund of cloud computing stocks has risen 11 times more than the broader stock market this year.