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Drones. Artificial intelligence. Machine learning. There are some very exciting things happening in the world of robots and technology. So, if you’re looking for a place to make some investments, you might want to invest in robotics.

Here are five reasons why:

1. Invest in Robotics: It’s Poised For Growth

The number one reason people invest in robotics is because they believe this industry is poised for growth. Robotics Investing News reports that in 2017, the market was $39.3 billion. Then by 2020 it was up to $100 billion. And the predict it will more than double that by 2025.

We’re truly right on the cutting edge of where this technology has the potential to go. Major industries including engineering and medicine are looking towards many different innovations. Of course, you can never know for sure what stocks are going to do well in the future. Nevertheless, with such potential for growth and development, it’s likely worth the risk to invest in robotics. We haven’t hit the peak of this industry yet so there is opportunity to make money with investments.

2. You Have a Lot of Options to Invest in Robotics

You can invest in very specific stocks for companies that interest you. For example, you could invest in iRobot (NASDAQ: IRBT). Alternatively, you can use robotics ETFs to invest in this sector as a whole. There are plenty of options to find a way to invest in robotics that is truly right for you. Explore those options.

3. It Could Help Your Business

Depending on what field you’re in, you might find robotics playing an increasing role at work. Robots are taking over some jobs. And remember that robotics includes things like home automation and GPS navigation. If you’re a business owner, you might even think about using them in your own work. You might even decide to invest in buying a robot or two for your business! It has a potentially strong ROI.

When you invest in robotics, you’ll probably follow at least a little bit of news about the market. Maybe you’ll get newsletters about your robotics stocks for example. That news could help you in surprising ways in your career over time.

4. Robots Might Boost Other Businesses

In some instances, robots do a better job than people at certain tasks. This frees up the people to do more creative, innovative things. Companies that do a terrific job of integrating robots therefore have the capacity to really grow their businesses. With robots doing a more efficient job at certain things and humans working alongside them to push a business further, there’s tremendous growth potential. And as companies grow, so do investments.

5. It’s Fun and Interesting

Investing is about money, of course. But many people find that they enjoy investing more when they care about the things that they’re investing in. If you can get passionate about putting your money towards something, then you enjoy the whole process more. You enjoy reading up on the topics, which can improve your investing. And even if you sadly take a loss, it might not hit you as hard if you feel like the chance you took helped further something that you believe in. So, if you think AI, drones, self-driving cars, and the like are interesting then why not invest in robotics?

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You might not have heard of Snowflake until recently. After all, it’s a cloud data storage system. Unless that’s something you need for your business, you may not pay attention to it. But then, the Snowflake IPO happened. It was a historic moment; it’s the biggest software IPO to date. So, should you invest in Snowflake? Here are some important things to consider.

What is Snowflake Cloud Data Storage?

Snowflake is a cloud data storage system platform. As a result, it competes in the market with AWS (Amazon), Azure (Microsoft), and Google Cloud.

Basically, they offer cloud data storage for large companies. They’ve built their own unique cloud data storage architecture that scales well and requires very little maintenance. Big companies that want to make sure that their customers’ data is stored safely in the cloud are turning to Snowflake for solutions.

Over time, Snowflake has also grown to offer related services. If you’re interested in the details of all that Snowflake can do for enterprises, learn more here or on the Snowflake website.

Snowflake’s Impressive IPO

If, however, you’re less concerned about the details of the business and more concerned about whether or not this company is a good investment, then you might already know about the company’s impressive IPO. Snowflake hit the IPO market in mid-September to great attention.

Here’s a quick timeline of the cloud data storage business’s IPO experience:

At the beginning of that month, SNOW shares were expected to debut at ~ $80 per share.
The expectation increased to $100+ per share before the IPO.
The night of the IPO, SNOW shares launched at $120.
However, by the following day, shares had already doubled. They peaked at $300 per share that day.
The closing price landed at just over $25o per share.
The company’s valuation: $70 billion.

When all was said and done Snowflake sold 28 million shares. This resulted in an IPO exceeding $3 billion.

The previous record for software IPO sales was not-quite-$1-billion. That was from Dell’s IPO more than a decade ago. No wonder people are talking about whether or not to invest in Snowflake.

Snowflake Isn’t Yet Turning a Profit

Snowflake is a relatively small business. The company has just over 3000 customers. That doesn’t seem like many for a company that launched in 2012. However, it’s double the number of last year’s customers. Revenue has also doubled. That said, CNN reports that the company has posted a net loss of about $170 million this year, which is the same as last year’s losses.

But, Snowflake Cloud Data Storage Has Big Backers

Despite the fact that the company isn’t yet making a profit, it has some big backers that believe in its potential. Both Salesforce and Berkshire Hathaway (Warren Buffet’s business) bought $250 million in Snowflake stock following the IPO. Notably, though, Buffet rarely invests in businesses that aren’t profitable, preferring to invest in larger, stabler companies, such as Apple. Therefore, it bodes potentially well that he believed in taking this risk.

Additionally, Snowflake caters to very high-profile companies. It’s not just anyone that’s going to use cloud data storage of this caliber. Approximately 150 of the Fortune 500 companies are customers of Snowflake. There’s potentially some big money to be made for this company.

Consider the Cloud Data Storage Competition

Currently, people love Snowflake because it seems to offer better cloud data storage solution than its competitors. Its pay-as-you-go storage plan and ability to quickly scale up or down as needed seems to work better than the others in the market.

That said, the competitors are big names: Amazon, Microsoft, and Google all have leading cloud data storage solutions. Since those are companies that might be willing to invest more to pivot and match or exceed Snowflake’s services, there’s no telling for sure how long Snowflake will lead this market.

Moreover, there are additional companies that have some value in this market. For example, NASDAQ points out that Cloudera is a potential competitor. They emphasize that big data solutions are going to continue to be important in business. Therefore, investing in companies like this does continue to make a lot of sense. But whether or not Snowflake is the right one of those companies to invest in – well, only the market can bear that out over time.

Risk vs. Reward

When it comes to deciding whether or not to invest in the Snowflake cloud data storage business yourself, you really have to think about potential risks and rewards. After all, this IPO rate is unprecedented, at least for a software company. Therefore, there’s no way to know what’s going to happen to the value of the stocks over time.

Many experienced investors argue that the huge IPO debut is problematic. They worry that the fact that the IPO launched at such a higher rate than expected means that it can only go down. Therefore, they would advocate waiting for a dip in the price before investing. The idea here is that the price will dip down but then has the potential to go back up over time if the company does as well as predicted. So, if you can invest when the prices are a little bit lower, then you might profit more in the long run.

That said, the value of the stock hasn’t declined significantly since the launch. Of course, it changes daily. But, as of the writing of this post, shares are hovering around $270 more than a month after the IPO.

Summary: Should You Invest in Snowflake?

Cautious, conservative investors definitely say not to invest in Snowflake right now. The company does have the potential for growth, but the huge IPO means that even with that growth, value is likely to go down. Therefore, it’s a big risk.

That said, if you’re the kind of investor that likes to hop on trends and is willing to take a big risk in order to potentially profit, then you might have fun investing in Snowflake cloud data storage.

The middle-of-the-road option is to wait a little bit. See if prices go down some overtime. Be patient. And when it feels like they’ve hit their dip, invest carefully. Buy some shares, knowing that the market for Snowflake truly could go either way.

5 Reasons Why You Should Invest in Robotics

1. Invest in Robotics: It’s Poised For Growth

2. You Have a Lot of Options to Invest in Robotics

3. It Could Help Your Business

4. Robots Might Boost Other Businesses

5. It’s Fun and Interesting

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