Snowflake's Fall from Grace: From 100x Oversubscribed IPO to Valuation Collapse

Snowflake experienced a meteoric IPO in 2020 with 100x oversubscription and 112% first-day gains, but has since fallen 90% from peak valuation multiples due to decelerating revenue growth, dilution from employee equity, and deteriorating financial metrics relative to peers like Palantir. The company's challenge reflects the structural difficulty of transitioning from hypergrowth to mid-growth while maintaining premium valuations, with FCF margins improving but growth endurance collapsing below acceptable thresholds.