Snowflake Market Value Losses Top $20 Billion as Lockup Expires

(Bloomberg) -- Snowflake Inc. dropped for a third-consecutive day after the expiration of a lockup that restricted company insiders from selling shares.

The stock fell as much as 7.3% on Tuesday as insiders had their first opportunity to cash out on gains since the company went public in September.

San Mateo, California-based Snowflake more than tripled in the past three months as investors had been eager to gain exposure to the cloud computing company whose revenue growth is projected to exceed 80% next year. But after the rally added nearly $80 billion in market value at the peak, concerns increased over whether its valuation had become stretched.

After closing at a record on Dec. 8 with a market value of more than $110 billion, the stock has fallen about 21%, its worst stretch since debuting. It has erased about $23 billion in market value in a week.

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