![]() ![]() And while Pinterest stock has recently traded as high as $26, making it one of the better-performing tech stocks this year, it could fall to around $16 if Ready fails, assuming it traded in line with where Snap and Meta Platforms are now trading, The Information calculates. Whether Ready and Elliott can draw more advertisers to Pinterest and jump-start its growth is far from certain. This situation is as much about Snap’s fall from grace than it is about any turnaround at Pinterest. ![]() The appearance of Elliott Management as a shareholder-with a board seat-has reinforced investor optimism.ĭon’t be fooled, however. While investors have lost faith in Snap thanks to its weakening revenue growth, Pinterest has stopped a yearlong slide in user growth and shaken up its top management with the appointment of a former Googler, Bill Ready, as CEO. Snap’s stock is now trading well below Pinterest’s on a multiple of expected next year’s revenue, the first time that’s been true since 2019, when Pinterest went public, according to Koyfin data. Plagued by reports that executives were fleeing, along with falling user numbers, its stock was trading at a deep discount to that of Snap, a similar-size social media app that for the past few years had shown faster revenue growth. At the start of 2022, Pinterest was on the outs with investors. Pinterest has "many positive attributes which will help support optimistic expectations," including growth that outpaces digital media companies such as Twitter and positive usage trends, says Brian Wieser, global president for business intelligence at media investment firm GroupM, in a blog post about the IPO. "There’s no reason to expect that growth won’t continue in the near-term, even if the specific pace will be difficult to anticipate with much precision," Wieser said.What a difference a year makes. Still there are others who think Pinterest's prospects aren't so bad. It is a similar story with other tech IPOs such as Uber, Lyft, and Snap." valuation reflects the wall of money looking for tech investments, rather than any fundamentals of Pinterest's business. In 1858, the company was listed as Strauss, Levi (David Stern & Levis Strauss) importers clothing, etc. "Astronomic valuations are popular in Silicon Valley, but there is surprisingly little real evidence supporting those valuations," he said in a commentary on the IPO. Warwick Business School professor John Colley said before the stock began trading that Pinterest's valuation was too high and based on unrealistic expectations. Since going public, Lyft shares have declined about 23%. Lyft, which conducted its own IPO in March, now faces two class-action lawsuits, filed in California state court by investors who say the company overstated its market position at 39% in its IPO, Bloomberg reported. Un-carrier checking: T-Mobile gets into banking, offering 4% interest and no fees on its free checking account Wall Street: Is the stock market open on Good Friday? But the aftermath of competitor Lyft's recent IPO has some Wall Street watchers wondering if the upcoming batch of IPOs may be overvalued. Pinterest is one of a lineup of technology-based initial public offerings set to begin trading including ride-hailing company Uber. The deal's underwriters had the option to purchase an additional 11.25 million shares. ![]() Pinterest raised about $1.5 billion, based on 75 million shares in the offering. The San Francisco-based company's stock, trading under the symbol "PINS," closed at $24.40, up $5.40 from the IPO price of $19 each. Shares of the digital scrapbooking site rose more than 28% in their public debut Thursday on the New York Stock Exchange. Pinterest has pinned itself to Wall Street. ![]()
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