Update as 1PM EST:
- Pinterest is already trading on the NYSE
- Pinterest opened for trading at $23.75 a share.
- That’s 25% higher than $19 where it was placed at IPO
Don’t let the Lyft hype make you miss out on other opportunities …
Pinterest just filed for an IPO that could raise over $1 billion. That’s right, the privately held social media site is going public.
In my opinion, this could be one of the hottest IPOs of the year.
So what does this mean for traders like us?
This IPO is one of several major tech companies planning to go public in 2019. Trading is all about looking for the next opportunity, so you’ve always gotta be on the lookout for these types of events — but never just jump blindly into anything.
A date hasn’t been set for the IPO, but we’ve been given some important details about the company’s plans.
Let’s see what the numbers have to say about the Pinterest IPO.
Be Prepared: Things to Know About the Pinterest IPO
Some things are still under wraps for now. Pinterest hasn’t even revealed a date for its IPO yet.
But we’re not completely in the dark. We have some big details to consider before planning any trades.
What Is Pinterest?
If you’re making trades without knowing what you’re trading, you’re doing it wrong. Pinterest is a major social media network, but it’s not quite like Facebook or Twitter. You’ve probably heard of it but maybe haven’t used it before.
Pinterest is a site that lets users browse, share, and pin pictures relating to various projects, goods, services, recipes, etc. It’s not a place where people go to talk about their day or share pictures of their cats. It has a more niche audience.
Companies like Facebook make their daily engagement numbers public. Pinterest doesn’t. This makes it a little harder for traders like us to gauge the popularity of the service, but we’ll have to make do with what’ve we got.
With that in mind, let’s dig into the numbers behind the IPO.
Valuation
Okay, so Pinterest is a big company … but just how big is it?
Well, the last private valuation for Pinterest was $12 billion. This was back in 2017. Not quite up to par with Lyft’s insane valuation, but most companies don’t hit numbers that high.
The bad news: Pinterest is actually looking at a decreased valuation with this IPO.
The good news: Pinterest’s 2018 revenue was over $750 million — up from roughly $470 million in 2017. The company’s net losses also shrunk by nearly half since 2017.
As of now, Pinterest is planning to sell 75 million shares for somewhere around $15 to $17 per share. This could change, though. So keep an eye out for updates.
This would raise a little over $1 billion and put Pinterest’s valuation somewhere around $10.6 billion with the maximum valuation being over $11 billion.
It’s lower than their last private valuation, but it’s not something to brush off. There’s a reason these companies are called ‘decacorns’ — they’re rare.
Other Tech IPOs to Watch for in 2019
Pinterest is only one of many tech companies planning to go public in 2019.
Lyft just recently went public, and companies like Uber, Slack, Postmates, and more have IPO plans for 2019.
As each company makes its public debut, you’ve gotta pay attention to how they perform — even if you don’t plan on trading them. Sure, Slack and Postmates are completely different companies, but they can still have an impact on each other.
Lyft’s IPO started off strong but saw a big dip. It’s been climbing back, but a weak early performance has some traders on edge about trading tech stocks.
Keep your eyes open and respond accordingly.
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What are your trading plans for Pinterest’s IPO? Got any strategies in the works? Let me know in the comments below.
