Tech startups Pinterest, Zoom soar in Wall Street debut

Daniel Fowler
April 20, 2019

San Francisco-based Pinterest is on track to raise more than $1.4 billion on its first day of trading. Its shares have slumped nearly 20 per cent from the $72 offer price to around $58.

One IPO, two stocks Zooming higher.

A strong share surge would be good news for Uber too, which is due to go public in the next few weeks along with other possible tech IPOS from Slack and Palantir. In a dig to social media services, Pinterest made it clear in its video to investors that ads are a tax to the user on social media. In contrast, Pinterest grew its ad-based revenue 70 percent during that period with a net loss of $63 million. The issue opened at $23.75, up about 25 percent from the pricing, and traded as high as $25.18. "This IPO is us shouting out loud to the world that we are here to stay, to build, to care, and to deliver happiness". In March, Jaluria estimated that Zoom would reach a valuation between $10 to $15 billion on its debut.

At the end of the day, though Zoom clearly outperformed, Pinterest also did better than expected. But all three companies primarily profit from advertising, a space dominated by Facebook and Google.

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"More Pinners say that Pinterest helps them find new shopping ideas and inspiration than users on other consumer internet platforms, according to a survey by Comscore that we commissioned", the company said in the regulatory filing. SEE:Digital Journal's Pinterest pages In terms of revenue generation, Pinterest earns its money through advertisements, which are placed discreetly among the "pins" or posts that users upload on the site. Apparently, Pinterest's roadshow on the way to its IPO was convincing and investors saw the potential in its future.

Yuan, Zoom's founder and CEO, owns 20.5% of his company's stock.

Pinterest was founded in 2010 and is still in the red, but the platform is growing rapidly: in 2018, the turnover rose by 60 percent to more than $ 750 million.

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