|Bid||193.86 x 1400|
|Ask||195.03 x 900|
|Day's range||192.38 - 196.65|
|52-week range||130.85 - 250.46|
|Beta (5Y monthly)||1.42|
|PE ratio (TTM)||14.70|
|Forward dividend & yield||5.00 (2.57%)|
|Ex-dividend date||31 Aug 2020|
|1y target est||N/A|
(Bloomberg) -- Saudi Arabia’s warning to OPEC+ cheaters and short-sellers alike helped oil prices stage their biggest weekly rally since June, despite a grim start to the week as industry heavyweights painted a troubling demand picture for the petroleum complex.Futures in New York rose 10% this week following a show of determination by Saudi Arabia, the most influential nation in the Organization of Petroleum Exporting Countries, to defend the market on Thursday. The Saudis hinted they’re prepared for new production cuts, and lambasted OPEC+ members that have cheated on production quotas.Prices briefly fell as much as 1.6% on Friday following an announcement from Libyan military commander Khalifa Haftar that he will allow crude production and exports to resume. But while Haftar reached the agreement with the country’s deputy premier, it was unclear whether the deal that excluded the National Oil Co. would actually restart exports.“Depending on Libyan oil supply coming online seems like it’s a pretty risky bet,” said Michael Lynch, president of Strategic Energy & Economic Research, so traders likely aren’t willing to make sizable wagers on it heading into the weekend. Saudi Arabia’s unambiguous comments on Thursday, though, give market participants the confidence they can “rely on OPEC to keep the taps turned off for a bit longer,” said Lynch.Haftar controls most of eastern Libya and has halted operations and shipments from his territory as part of a campaign against the internationally recognized Tripoli government. The OPEC member is pumping just 80,000 barrels a day, but produced 1.2 million a day last year.Oil reversed last week’s losses, which pushed West Texas Intermediate futures toward $37 a barrel amid a slew of downbeat demand forecasts from the International Energy Agency to Trafigura Group and BP Plc. Helping support prices this week, U.S. government data showed crude and gasoline stockpiles declining. American oil stockpiles are now at their lowest since April.But crude may not be out of the woods just yet, with distillate supplies at record highs and refining margins for the fuel deteriorating in the U.S. and Europe. Meanwhile, rising coronavirus infections in Europe raise the specter of a return to tighter restrictions that have crippled consumption.“The oil markets have made a nice recovery from their lows,” helped by the decline in American crude supplies, said Bill O’Grady, executive vice president at Confluence Investment Management in St. Louis. “But the demand data just doesn’t look all that good.”There is ongoing debate over the state of the global supply picture heading into the end of the year. Among the latest voices to chime in, Goldman Sachs Group Inc. said global oil inventories should draw down this month and the market is likely to see a deficit of 3 million barrels a day in the fourth quarter. That comes after conflicting views this week out of Vitol Group and Trafigura about whether supplies will shrink or head back into surplus by year-end.On a positive note, the spread between WTI’s nearest contracts strengthened to its narrowest contango structure in roughly a month. A narrowing contango signals easing concerns of oversupply.The spread “tends to either blow out or tighten as you approach expiration, but it’s supported by the fundamentals here,” said Bob Yawger, head of the futures division at Mizuho Securities. “When you have the contango start to narrow, owners of crude oil are going to be less likely to stuff barrels into storage.”Companies operating in the Gulf of Mexico may see further storm-related disruption, even as the region still recovers from Hurricane Sally with over 21% of oil production shut in. Among companies preparing for the tropical depression heading for the region, Royal Dutch Shell Plc said it is shutting its Perdido oil and natural gas production hub in the western Gulf of Mexico.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Snowflake Inc.’s initial public offering isn’t just creating new fortunes, it’s adding to the wallets of some of Silicon Valley’s biggest names.Iconiq Capital, a multifamily office whose clients include Facebook Inc.’s Mark Zuckerberg, LinkedIn Corp.’s Reid Hoffman and Twitter Inc.’s Jack Dorsey, took part in multiple Snowflake funding rounds beginning in 2017. Its 12% stake in the company, purchased for $245 million, was worth more than $4 billion at the initial offering price of $120. By the end of Wednesday, the same stake was worth a staggering $8.6 billion.Read more: Snowflake soars into tech big leagues with $73 billion valuationShares of the cloud-computing company surged as high as $319 in New York trading before dropping back to close at $253.93. That made it worth $70 billion, about as much as Goldman Sachs Group Inc. and almost six times the $12.4 billion it was valued at in a February fundraising round.Cloud computing “is a secular trend right now,” said Bloomberg Intelligence analyst Mandeep Singh. “We have already seen Zoom, DocuSign and Datadog do well this year. Investors understand the cloud business model well and that makes a high-growth company like Snowflake attractive.”The San Mateo, California-based firm’s top executives also saw their wealth surge. Four of them -- Frank Slootman, Bob Muglia, Michael Scarpelli and Benoit Dageville -- now own stakes worth a combined $8 billion.Only one of them, Dageville, was a founder. His stake is smaller than Slootman’s, who joined as chief executive officer from ServiceNow Inc. last year.Concurrent with the IPO, former CEO Muglia sold half of his 8.1 million Snowflake shares to Berkshire Hathaway Inc., which is also investing an additional $250 million at the IPO price. Such deals aren’t typically part of Warren Buffett’s play book, although in 2018 Berkshire invested in the initial offering of Brazilian fintech StoneCo Ltd.Buffett’s move boosted the already sky-high institutional interest in the cloud-computing firm, Singh said. It “definitely validates the attractiveness of Snowflake’s IPO,” he said.So far it has been a winning bet for Buffett, with the value of Berkshire’s investment more than doubling by the end of the day.(Updates value of Iconiq’s stake in second paragraph and top executives’ in fifth.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Snowflake Inc. soared in a euphoric stock-market debut that transformed the eight-year-old software company into business valued at more than $70 billion.Snowflake’s $3.36 billion initial public offering is a record for a software company and the biggest in the U.S. this year. Its share price soared as much as 166% Wednesday, minting fortunes inside the company and across Silicon Valley.Shares of the cloud-data software maker opened at $245 -- more than double its IPO price -- in New York trading. That 104% gain at the opening bell was the third-highest such pop for an IPO of $1 billion or more on a U.S. exchange and the biggest since Florida-based equipment rental company Herc Holdings Inc. went public in 2006.Snowflake sold 28 million shares at $120 apiece on Tuesday. They were earlier marketed for $100 to $110 each after the range was boosted from $75 to $85.The shares, which reached as high as $319, closed up 112% to $253.93 in New York trading, giving it a market value approaching six times the $12.4 billion it received in a private funding round in February.Uber, DellThat makes Snowflake, previously a lesser-known firm based in San Mateo, California, more valuable than Uber Technologies Inc., Dell Technologies Inc. and General Motors Co., according to data compiled by Bloomberg.“So far, so good,” Snowflake Chief Executive Officer Frank Slootman said in an interview. “IPOs for us are milestones along the way. They’re not endpoints. We needed to do this for a number of reasons, especially to raise the stature of the company in the marketplace.”Slootman said that he’s spent a year speaking with institutional investors about backing Snowflake, and now hopes they will maintain large stakes for at least five to 10 years. He wanted shareholders who weren’t just looking for “momentum,” he added.Comparing an IPO to the switch from college football in the U.S. to the pros, he said, “I sometimes refer to it as we go from playing on Saturday to playing on Sunday.”MORE: Snowflake IPO Creates Flood of Wealth for Silicon Valley EliteWith IPOs roaring back after a spring lull as the coronavirus pandemic hit the U.S., Snowflake’s listing is this year’s largest on a U.S. exchange by an operating company, according to data compiled by Bloomberg. That excludes the $4 billion raised in July by a special purpose acquisition company, or SPAC, backed by billionaire investor Bill Ackman.U.S. IPOs are having a busy week as 21 companies are expected to price their offerings raising more than $10 billion combined, according to the data.JFrog JumpsJFrog Ltd., which makes tools for software developers, closed up 47% to $64.79 after jumping as much as 75% in its trading debut Wednesday following a $509 million offering. Also on Wednesday, Unity Software Inc. elevated the price target to raise as much as $1.2 billion its IPO set for Thursday.Snowflake’s IPO attracted Warren Buffett for a rare investment. Berkshire Hathaway Inc. and Salesforce Ventures, an arm of Salesforce.com Inc., have each committed to buy $250 million of the company’s Class A common stock in a private placement. Berkshire also agreed to buy 4 million shares in a secondary transaction, according to Snowflake’s filing.Founded in 2012, Snowflake is a challenger to Amazon.com Inc. as a provider of data warehouse technology, which compiles information from different systems so clients can analyze it together in the same place. In the fiscal year that ended Jan. 31, Snowflake’s revenue soared 174% to $264.7 million compared with the previous year, the company reported. In the sixth months ended July 31, the company lost $171 million on revenue of $242 million.Data ‘Exploding’“Data is exploding,” said Carl Eschenbach, a partner at Snowflake investor Sequoia who’s also on the software company’s board. “There is no centralized data cloud other than Snowflake that can combine all of that data and give you the business insights you want in a very fast way.”Eschenbach added, “We are still in the early innings of companies moving their data to the cloud.”Daniel Elman, an analyst at Nucleus Research, said Snowflake’s IPO surge is a culmination of the broader success of cloud-based companies.“Momentum has been building where cloud has gone from a proof of concept or for things that were less critical to companies realizing it will enable a much more agile and modern architecture and working style,” Elman said in an interview.Snowflake’s offering was led by Goldman Sachs Group Inc. and Morgan Stanley. The company’s shares are trading on the New York Stock Exchange under the symbol SNOW.(Updates with CEO’s comments in seventh paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.