Pinterest officially filed for IPO as one of prominent tech startups getting ready to go public in 2019. Pinterest should be one of the first IPOs of all announced, while Lyft is preparing to take off on March 30th as the first tech IPO for 2019.
Given the fact that Pinterest already filed their S-1 to Securities and Exchange Commission, the initial public offering should take place in matter of weeks or several months.
In the meanwhile, the company is evaluated at 12 billion dollars, while reporting around 750 million dollars in revenue for 2018 with losses set at 63 million dollars. In case you are interested in Pinterest IPO, here are some things you should know before you decide to invest.
What You Need to Know Before Investing in Pinterest IPO
IPOs usually come with a great dose of hype, which carries a certain level of risk with itself, as well as arriving with new potential for the company’s growth, which then again reflects on how well the shares are doing in the market.
It is a common case that new public offerings become the underperformers of the market for at least several quarters, while this underperformance many prolong to years even, which is why it is always advised to consider these risks when deciding to invest in IPOs.
As far as Pinterest’s IPO concerned, the company managed to show the ability to generate a solid revenue, while also managing to mitigate its losses in oppose to previous history of the company.
At the same time, the value of Pinterest IPO is set at 12 billion dollars while it is still not known how many share the company is issuing and at what price.
What is certain is that Pinterest has a flattering growth rate and the ability to generate more profits with a business plan that would be more focus on advertising of different brands and names, as Pinterest relies on visual content.
How Profitable is Investing in Pinterest IPO?
Pinterest have officially filed S-1 for their IPO, submitting their filings to Securities and Exchange Commission on March 22nd, which means that the upcoming IPO from this prominent social network should be out in public any time now.
It is expected to see the IPO already out in April, but what is certain is that Pinterest is aiming at going public already in the first half of 2019.
Even though the filing has been made official on March 22nd, the number of shares that are to be issued by the company, as well as the estimated price per share, is still being kept confidential at this point.
What You Need to Know About the Upcoming Pinterest IPO
As Pinterest filing for IPO has been made official, the company should commence with public trading any time now, while the company’s estimates are set at around 12 billion dollars based on previous funding rounds.
In the meanwhile, the company didn’t state the amount they expect to raise from the upcoming IPO, also keeping the share price confidential. Pinterest also insisted upon filing their IPO that the company shouldn’t be categorized a social network company as their main competitors are actually consumer internet companies, advertisers and media companies, while the company is not competing against Facebook that went public back in 2014 with estimates set at 104 billion dollars.
The company considers that Pinterest a productivity tool and a media-rich utility, rather than categorizing the company within the social media industry, adding that Pinterest recorded 750 million dollars in revenue during 2018, also confirming 250 million monthly users and lowered losses set at 63 million dollars for 2018.
Even though the company itself is still developing an effective business strategy that is definitely inclined towards advertising of different brands and products, Pinterest is said to be unable to create strong revenues, however, Pinterest IPO may be a good chance for the company to recollect and come up with an effective business strategy, already valued at 12 billion dollars.