Pinterest valued at $16 billion on stock market debut

Jeannie Matthews
April 21, 2019

On April 18th, Pinterest (NYSE:PINS) had its first day of trading on the New York Stock Exchange. It and Zoom, a web-cloud-services company that also went public Thursday, are the first tech companies to list their stock since the highly anticipated Lyft debut turned into a dud.

Why does it matter?

Pinterest has 265 million monthly active users and its user base is still increasing at a considerable pace, particularly overseas.

Demand is so high for the profitable company that when the price is finalized after the market close on Wednesday, investors are expected to pay $35 or even more, said the sources, who asked not to be named because the negotiations are confidential.

Pinterest joins Lyft as one of several so-called "unicorns" - private companies that have raised more than $1 billion in venture capital- to float an IPO.

Other high-profile companies, such as Twitter and Snap, also had strong initial trading days but then saw their stock prices fall substantially in the subsequent months.

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Shares of Zoom Video Communications, another technology company that debuted on Thursday, opened 80 percent above the IPO price of $36.

Seeking a massive $100 billion valuation, traders are already betting on whether it will follow in the footsteps of its rival Lyft, or exceed expectations. That concern arose despite Yuan becoming a billionaire three times over as the video-conferencing company soared to a value of $15.9 billion after its $751 million IPO.

Pinterest's IPO was underwritten by a 12-member team led by Goldman Sachs and JPMorgan. The stock is trading on the Nasdaq Global Select Market under the ticker ZM.

Pinterest is a social network, as well as a visual search engine.

Pinterest's initial 15-17 US dollars per share target range had set it on course to be valued below its last private fundraising valuation of 12.3 billion USA dollars in 2017. Unlike other sites, Pinterest users typically are looking to eventually buy what they are searching for, which lines up with what advertisers want, he said. Pinterest's revenues jumped 60% past year to $756 million.

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