Databricks DTBRK may not have gone public yet, or even filed for an initial public offering (IPO), but that hasn’t stopped investors from wondering when the company’s shares will hit the public market. While there are no concrete plans for an IPO right now, experts predict the company could file for one in 2025 or 2026.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
While Databricks could have easily filed for an IPO already, the company may be waiting for a more favorable market. Interest rates remain elevated, which has cooled the IPO market. There’s been talk of the Federal Reserve resuming interest rate reductions before the end of the year. If this happens, it could be the push Databricks needs to file for an IPO.
Investors have a strong interest in an IPO for the data analytics and artificial intelligence (AI) company. A huge source of that interest is a recent valuation of Databricks. The company raised $1 billion this month, sending its valuation to $100 billion. At the same time, the company reported an annual recurring revenue of $4 billion. To put that in perspective, Snowflake (SNOW), one of Databricks’ biggest rivals, has a market capitalization of $73.43 billion and annual recurring revenue of $4.4 billion.
Databricks vs. Snowflake
Databricks and Snowflake serve similar customers with their data analytics and AI offerings. With that in mind, traders can look to SNOW stock to get an idea of how Databricks might perform if it goes public.
Shares of Snowflake have rallied an impressive 40.37% year-to-date. Extending that to a 12-month view, SNOW stock has rocketed 102.27%. This suggests Databricks could be set for major gains if or when it eventually goes public.
Will Databricks Stock Be a Buy, Sell, or Hold?
Using Snowflake as a basis, Databricks could gain favor among analysts if it can mimic SNOW’s performance. Snowflake has an analysts’ consensus rating of Strong Buy, based on 32 Buy and four Hold ratings over the past three months. With that comes an average SNOW stock price target of $265.55, representing a potential 22.19% upside for the shares.
