Pinterest became a publicly traded company back in mid-April, joining the rising trend of tech IPOs.
After the initial public offer, analysts have come to a conclusion that Pinterest was properly evaluated ahead of IPO, having the social media company focused on advertising, raise reportedly around 1.5 billion dollars through its IPO.
A month later, is Pinterest still a good investment and should you invest in Pinterest shares in May 2019?
Pinterest is said to be valued at 10 billion dollars in market capitalization before the IPO. However, after ending the IPO and the first trade successfully, the total cap of the company is said to be set at 14 billion dollars.
Pinterest managed to raise almost 1.6 billion dollars through the initial public offer, while analysts like JP Morgan claim that the company has great odds of becoming profitable already in 2020.
Despite praises coming from financial analysts, some are concerned that Pinterest is facing a major competition in Facebook and Google.
On the other hand, Pinterest representatives claim that the company has a different business model, thus not finding a competitor in Facebook. While looking to monetize on ads much like Facebook, Pinterest is more focused on visual content and brands.
Should You Invest in Pinterest? Is Pinterest a Buy or Sell?
Even though Pinterest had a successful IPO, the shares did lose -8% during the period of 30 days since PINS shares hit the market.
Concluded with May 15th, Pinterest is set at 28.99$, with a potential to go over 29$ with the lowest price for the week set at 26$.
Pinterest opened at the share price of 24$, recording rises, however, the stock did see dips in the last week.
Goldman Sachs for instance gave the share neutral rank expecting to see it around 26$, while the overall expectations for Pinterest are ranging between 26$ and 28$.