A banner for Snowflake Inc. is displayed celebrating the company’s IPO at the New York Stock Exchange (NYSE) in New York, U.S., September 16, 2020.
Brendan McDermid | Reuters
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Delphi Management founder and President Scott Black told CNBC on Wednesday that stock prices for newly public companies such as Snowflake and Airbnb have run way too high, too soon.
Snowflake, which makes data-warehousing software, completed its initial public offering in September and surged more than 100% on its first day of trading to close at $253.93. The stock has continued to move higher this fall, closing at $331.65 apiece Wednesday.
Airbnb also soared more than 100% during its market debut earlier this month, settling at $144.71. Shares of the home-rental marketplace closed Wednesday’s session at $158.01 each.
“I think it’s a lot of euphoria built in,” Black said on “Closing Bell.” “They obviously have interesting niches, and they make for good dialogue on CNBC, but this is really ridiculous. These companies, and including Airbnb and Snowflake, which will have no earnings next year, all have market caps of $50 [billion] to $100 billion. … People are projecting much too far into the future.”
