Tech IPOs to balloon as Pinterest pops 25pc on first day's trading

Tech IPOs to balloon as Pinterest pops 25pc on first day's trading

Some suggest it's a vote of confidence in the tech IPO market, which has been partially tainted by Lyft's unimpressive performance since it went public last month.

Zoom, also based in San Francisco, is poised to raise more than $456 million through the sale of shares and a private placement. Prior to its debut, the firm announced an official IPO pricing of US$36, which would value the company at US$9.2 billion.

A key difference between Pinterest and Lyft were their valuation expectations.

There's some tech jubilance in the air on Wall Street and in Silicon Valley as a pair of newly public companies - Zoom and Pinterest - are seeing their stocks soar on their first trading day.

Compare that to Thursday's debut of Zoom Video, whose market cap surpassed $16 billion, with more than 13 million shares traded in the first 30 minutes after it opened.

Pinterest's successful debut bodes well for the IPO market as investors brace themselves for Uber's much-anticipated stock launch.

Shares jumped 72% on its opening day, putting the company's valuation at almost $16 billion.

"Opening up for Uber is like opening up for the Rolling Stones", he said. Ali Mogharabi, an analyst at Morningstar Research, said Pinterest has opportunities to increase its share of the $500bn global digital advertising market.

Zoom's offering was led by Morgan Stanley, JPMorgan Chase & Co., Goldman Sachs Group Inc. and Credit Suisse Group AG. The fund now holds 71 stocks in its basket, with each accounting for less than 7% exposure. "Pinterest is not a pure media channel, nor is it a pure utility". Its net loss shrunk to $63 million in 2018 from $130 million in 2017.

The company earns money through advertisements, which are placed among the "pins" or posts that users upload on the site. The company had $330 million in revenue last year and profit of $7.6 million, making it one of the few profitable technology companies going public this year.

Pinterest said it had a turnover of $755.9 million in 2018, just under twice the 2017 fiscal year, and a net loss of nearly $68 million, down to about half the figure for the year before.

Related Articles