Pinterest shares see 25% pop on first trading day

Company prices shares at $19, above range at which it marketed them

A Pinterest banner hangs on the facade of the New York Stock Exchange. Photograph: Brendan McDermid/File Photo/Reuters

A Pinterest banner hangs on the facade of the New York Stock Exchange. Photograph: Brendan McDermid/File Photo/Reuters

 

Pinterest, the digital pin board company, made a spectacular debut on the New York stock exchange on Thursday when its shares leapt 25 per cent in its first few hours of trading. The company, that allows users to “pin” and share pictures of favorite recipes, decorating tips and inspiring images, is used by 250 million users a month and reaches “eight out of 10 moms” in the US, according to its regulatory filing.

Pinterest’s shares were priced at $19 (€16.92) and began trading at $23.75, a 25 per cent increase that valued the company at $12 billion. It is the latest in a series of massive stock sales from Silicon Valley “unicorns” – the new generation of privately held tech giants valued at billions of dollars that are now going public. So far many of those companies have stumbled in the stock market. Lyft, the ride-sharing company, launched its share sale in late March.

First day

It too experienced a first day “pop” as shares soared 20 per cent. But they have since fallen sharply and are now down close to 20 per cent. Unlike Lyft, however, Pinterest is close to making money. The service has avoided the controversy that has surrounded other social media platforms such as Facebook and Twitter and has proved increasingly popular with advertisers. The company’s revenues have been growing steadily, up 60 per cent from 2017 to 2018, while its losses have fallen, down from a net loss of $130 million in 20167 to $63 million in 2018. – Guardian service