This will be the biggest year ever for software IPOs as coronavirus and work-from-home show value

A stock trader wearing a mask walks near social distancing signs the day a new IPO is launched at the New York Stock Exchange as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on August 27, 2020 in New York City.

The fourth phase allows outdoor arts and entertainment, sporting events without fans and media production.

With a tsunami of software IPOs at high prices comes the usual worries that valuations are getting out of control.

Snowflake is going public at more than 81 times trailing revenue, Matt Kennedy, senior IPO market strategist for Renaissance Capital, tells me.

"People will pay up for growth, regardless of how much they are losing," he said, noting that Snowflake's revenues are growing 125 percent in the last quarter, but they are still losing money — free cash flow loss of $132 million in the twelve months ending in July, on revenues of $403 million.

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