Pinterest Fell Short of Expectations
Pinterest's shares crashed before they were officially released: the digital pin board company is going to sell 75 million shares for $15-17 apiece and earn up to $1,275 billion. It is not too much, as in 2017 at pre-IPO these shares were offered to investors for $21,54 apiece.
Why is it important?
Now Pinterest is valued at $11,3 billion, which was approximately $0,7 billion less than of that 2 years ago. In 2018 the company's revenue reached $755.9 million — it is 60% more than of that a year before. However, Pinterest is still unprofitable and for this reason, potential investors are not rushing to put their money in it — in fact, they do not understand how the company will build a profitable presence. Several days ago Lyft's shares slipped 12% because the firm had not managed to explain how it would increase profits and get off "the needle of investors". The shares will soon appear on the New York Stock Exchange (NYSE) under the ticker "PINS", but we should not pin hopes on this IPO.