Pinterest Officially Files for IPO: What You Need to Know Before Investing in Pinterest IPO
Pinterest officially filed for IPO as one of the prominent tech startups getting ready to go public in 2019. Pinterest should be one of the first IPOs of all announced, while Lyft took 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 a 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.