Pinterest is the latest social media company to have entertained the prospects of an initial public offering prior to trading its stock on public markets like the New York Stock Exchange and the Nasdaq. Several days ago, Pinterest spokespeople had shared with media members that the company planned to price its shares offered up at its initial public offering between $15 and $17 per unit.
However, a last-minute interest boost across the potential pool of investors interested in participating in the initial public offering urged the company to raise its share prices at $19 per unit.
The company’s IPO took place just yesterday, on Wednesday, April 17, 2019, during which Pinterest managed to haul in a whopping $1.43 billion in funding.
Financial experts value Pinterest around $10 billion, using estimates taken from after the initial public offering was completed.
Pinterest is slated to begin offering its shares for trade on public stock exchanges later today, Thursday, April 18, 2019, specifically the New York Stock Exchange.
Although the amount raised in yesterday’s initial public offering has put off some positive sentiments, the current valuation of Pinterest’s entire business operations at just $10 billion is disappointing to investors who bought in two years ago or longer, when the valuation of Pinterest was worth some $12 billion.
According to Pinterest officials, the company’s revenue rose some 60 percent from the close of 2017 to the end of 2018, jumping all the way up to a whopping $756 million.
Pinterest managed to inch closer to its long-running dream of being profitable by sustaining a net loss of just $63 million. Although this might sound like a lot of money, many startups often generate losses in terms of net income as a result of not having grown according to economies of scale, meaning they’re not large enough to make as much money as they’d like to.
Outside of Lyft’s initial public offering, Pinterest is one of 2019’s most substantial, newsworthy IPOs when it comes to tech companies.
Pinterest’s public stock is slated to be sold around the same time that Zoom’s stock will be authorized for sale by the New York Stock Exchange, as well.
Based on Lyft’s performance in terms of stock price since its initial public offering last month, a drop of 19 percent, it’s not clear if Pinterest or Zoom will fare well in 2019 – keep an eye on the candlesticks to find out.
Dil Bole Oberoi
