[aiappreciator]

The stock market reacted quite positively to this acquisition (Basically confirmed a few days ago). Buying a soon-bankrupt startup is very cheap, and getting a strong tech stack and already formed team with strategic synergies with the main business is going to be valuable.

This is contrasted with panic acquisitions like say Adobe & Figma.

[CharlesW]

> The stock market reacted quite positively to this acquisition…

How is Snowflake stock dropping 12% "reacting quite positively"?

[nycdatasci]

Parent mentions this was basically confirmed a few days ago. Today's drop is related to earnings.

[dotBen]

And so, if this is the first time you have heard about Snowflake acquiring Neeva you now know the level of asymmetry of information that exists in the 'public' market.

Use this as a lesson to exercise caution when personally investing in individual stocks in the public markets - even if you are buying tech stocks and feel as though you follow tech trends closely because you work in the industry.

Wall Street already knew and priced it in before you did.

[CharlesW]

Traders may have heard this from The Information: "Snowflake in Talks to Buy Search Startup Neeva in AI Push" from 5/17, then "Snowflake Nears Acquisition of Search Startup Neeva" from 5/19.

[cj]

Which is totally fine, unless you’re day trading, which you probably shouldn’t be if your goal is to maximize returns.

Day to day and month to month ups and downs don’t matter if your investment time horizon is long.

The dips are actually great because they create opportunities to buy more of the stock cheaper, assuming you’re not planning to sell it all in a few days.

[CharlesW]

Okay, but if we assume last week's small rise is attributable to the confirmation of the Neeva acquisition, that seems more like a "market reacted tepidly" to me.