Databricks IPO – how to trade Databricks shares

Learn about Databricks and its anticipated IPO, including key business drivers, potential valuation, and how to trade its stock via CFDs when it lists.

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When is the Databricks IPO date?

As of April 2025, Databricks has not confirmed an official date for its initial public offering (IPO). However, the company is widely expected to list in 2025, following a $10bn financing round in 2024 that valued the company at $62bn. Market watchers suggest a Nasdaq listing is most likely, though timing could depend on AI market sentiment and macroeconomic conditions.

Key IPO timing factors include:

• AI sector momentum: Databricks is seen as a core infrastructure play in the AI boom, and may aim to list while investor interest in AI remains high.
• Financial growth: Databricks has passed $3bn in annual revenue and is reportedly approaching breakeven, both important milestones before going public.
• Market appetite: a rebound in tech IPOs could create a favourable window, especially for firms with strong enterprise focus and generative AI capabilities.

What is Databricks?

Databricks is a US-based data and AI company that provides a unified analytics platform for data engineering, machine learning, and business intelligence. Founded in 2013 by the creators of Apache Spark, it enables organisations to unify their data warehouses and AI workloads in the cloud.

Key milestones in Databricks’ journey

• 2013Founded by seven academics from UC Berkeley, including Ali Ghodsi, Matei Zaharia, and Reynold Xin.
• 2015–2020Grew its customer base across Fortune 500 firms and partnered with cloud providers like Microsoft Azure and AWS.
• 2021Hit a $38bn valuation after Series H funding; named a leader in data science platforms by Gartner.
• 2023Raised $500m at a $43bn valuation and acquired MosaicML, a generative AI model platform.
• 2025Widely expected to list on the Nasdaq, potentially as one of the biggest AI-themed IPOs to date.

Databricks’ key products and features

• Databricks LakehouseCombines data lakes and data warehouses for unified access to structured and unstructured data.
• AI and ML toolstools for training and deploying machine learning models, including integration with open-source frameworks.
• Mosaic AI (via acquisition)Generative AI platform focused on customisable, enterprise-grade large language models (LLMs).
• Collaborative workspaceShared notebooks and dashboards for data scientists, analysts, and engineers.
• Cloud-native scalabilityHosted on AWS, Azure, and Google Cloud, offering multi-cloud flexibility.

How does Databricks make money?

Databricks makes money through a subscription-based SaaS model, charging enterprises for access to its platform based on usage, compute resources, and features.

Here are the main ways Databricks generates revenue.

Databricks has over 10,000 customers globally, including firms like Shell, Comcast, and HSBC.

What might influence the Databricks live stock price?

Once Databricks lists publicly, its share price will be shaped by a mix of company-specific developments and wider market forces. Key factors may include growth in enterprise demand for AI tools, the company’s ability to scale revenue and margins, and the overall strength of the tech IPO market. Below are some of the main drivers that could affect its stock performance once trading begins.

AI adoption and enterprise growth

Databricks’ valuation is closely tied to how widely its platform is adopted by enterprise clients looking to modernise their data infrastructure and deploy AI models at scale. Strong uptake of its Lakehouse architecture, combined with growing demand for Mosaic AI capabilities, could fuel investor optimism about its long-term role in the AI economy. Large enterprise wins, new partnerships, or customer expansion into new verticals may be seen as bullish signals.

On the flip side, any signs of slowing demand, particularly from sectors sensitive to economic cycles, may spark concern. If businesses delay AI investments due to budget constraints or macro uncertainty, Databricks’ top-line growth could suffer, weighing on its share price.

Learn more about how to invest in AI, and find out more about the best AI stocks to consider.

Revenue growth and margins

As of 2024, Databricks had reportedly surpassed $3bn in annual revenue and nearing cash-flow breakeven. Continued revenue growth, along with clear progress toward operating profitability, will be crucial to justify its high valuation post-IPO. Investors are likely to reward consistent quarter-over-quarter performance, high net retention rates, and disciplined cost control.

However, Databricks also operates in a capital-intensive space, with significant investment in R&D, cloud infrastructure, and customer acquisition. If these costs rise faster than expected, or if growth slows, it may delay profitability and make the company vulnerable to downward revaluations in public markets.

Tech IPO market conditions

Databricks won’t be listing in isolation – its performance will be affected by broader investor appetite for tech IPOs and AI-themed stocks. If 2025 sees a strong pipeline of successful public offerings and sustained enthusiasm around AI infrastructure, Databricks may benefit from positive momentum. Comparisons to peers like Snowflake, Palantir, or even Nvidia could further drive demand if sector sentiment remains bullish.

Conversely, if market conditions become more risk-averse – whether due to rising interest rates, global economic headwinds, or disappointing IPOs in the sector – Databricks may face a tougher public debut. Valuation multiples could compress across the board, putting pressure on growth-stage companies to justify their market cap with stronger fundamentals.

Competitive pressures

Databricks operates in a fast-evolving and highly competitive space, facing rivals such as Snowflake, Google BigQuery, and Amazon Redshift on the data side, and OpenAI, Hugging Face, and others in the AI domain. Continued product innovation, such as improvements to its unified analytics engine, generative AI tools, or cloud-native performance, could help the company differentiate itself and retain its first-mover advantage in enterprise AI infrastructure.

But the company will need to move fast. If competitors roll out similar features, undercut pricing, or gain traction with large clients, market share erosion could become a concern. Partnerships or integrations that are seen as reactive rather than proactive might signal strategic drift, which can impact investor confidence.

Innovation and AI capabilities

As a platform that enables companies to process and analyse vast amounts of sensitive data, Databricks could face increasing scrutiny from regulators around the world. New rules governing AI model transparency, user data rights, or cloud data localisation could impact how its services are delivered, especially in regions like the EU or Asia-Pacific.

Proactive compliance and transparency may help build investor trust and position Databricks as a responsible AI enabler. However, any missteps such as data breaches, non-compliance fines, or lawsuits could result in reputational damage and added costs, both of which may affect the stock’s performance.

Media attention, analyst coverage, and trading momentum

Like many high-profile IPOs, Databricks may experience significant price swings driven by sentiment, headlines, and analyst ratings in its early months as a public company. Positive coverage – such as inclusion in key indices, strong earnings beats, or upgrades from analysts – could fuel buying activity and upward momentum.

At the same time, post-IPO volatility is common, especially if early earnings reports miss expectations or if insiders begin selling shares after lock-up periods. Retail sentiment, including buzz on social platforms or AI-related hype cycles, may also exaggerate short-term price moves – both to the upside and downside.

How to trade Databricks stocks via CFDs

If Databricks goes public, you may be able to trade its stock via CFDs. Here’s how:

• 1. Choose a platformCapital.com offers CFD trading on thousands of global stocks, including newly listed tech shares.
• 2. Open an accountRegister, verify your identity, and set your trading preferences.
• 3. Fund your accountDeposit money into your trading account. Only use funds you can afford to trade with.
• 4. Watch the marketMonitor Databricks’ stock chart, earnings reports, and company news after it lists.
• 5. Open a positionUse long or short positions to trade potential price moves. Add risk management tools like stop-loss orders.

Learn more in our CFD trading guide.

Which other AI and tech stocks can I trade?

While Databricks remains private for now, you can trade similar or related tech firms with exposure to AI and big data:

• Snowflake (SNOW)Cloud data platform often viewed as a key competitor to Databricks.
• Palantir (PLTR)Enterprise AI and analytics firm with government and commercial clients.
• Nvidia (NVDA)Semiconductor giant powering AI infrastructure and data centres.
• Microsoft (MSFT)Major Azure partner and investor in OpenAI, involved in both data and AI tooling.
• Salesforce (CRM)Owns Tableau and offers AI-driven CRM tools.
• Alphabet (GOOGL)Google Cloud’s BigQuery and Vertex AI compete directly with Databricks services.

See our full shares trading guide to explore more opportunities.

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