(PINS) PINTEREST, INC Initial public offering
Thank you for the prompt reply and exaplanation! I will read this!
Pinterest went public today! When do you estimate it will be available in Freetrade?
Don’t really want access at IPO stage for these tech companies (short VC-backed tech stocks on IPO as a hedge fund theme based off Lyft!) but I would like to be able to invest in them.
Keen for Pinterest
We’ve just added Pinterest (& a few other US tech stocks) to the app
I’ve closed this topic to return the votes of everyone who requested this stock but you can carry on discussing whether Pinterest will carry on quietly growing here: Pinterest: the Silent Unicorn
I hope these reports are true! If so, is it feasible to add to Freetrade as soon as shares become available later in the year?
Saw this summary a few weeks ago
It’s great to see another tech company’s planning going public especially one that’s losing relatively little money. They’re a little bit more low key than some of the other companies that’ve announced IPOs this year but they’re still experimenting with some interesting technology like real image recognition x retail -
What do you think of their potential for growth / business model?
We won’t necessarily be able to add every company right after they IPO but if it’s a popular stock then we’ll aim to add it as soon as possible
I don’t get the popularity of Pinterest. Tried it when it first started but meh
Agreed. $12 billion! Really?
I was more optimistic about their business model a few years ago. Since they are still losing money after ~ 10 years ( $63 million in 2018), I’m not sure I’d invest now, certainly not at a $12b valuation. It’s weird because there are so many possibilities for monetising the site, which they have failed to really get a handle on after all this time (shopping, brand showcases/engagement, image search etc). They are still growing users though (at 250m MAU), so that’s something. I expect them to slowly leak traffic now as they have been around for a long time in internet years, and have no moat against younger, more agile, more trendy, services coming along, and big services like instagram could easily become direct competitors in this space.
There’s not much in the current crop of IPOs which I find interesting personally - there are massive regulatory challenges for most of them, some engage in questionable practices, and many are still making massive losses and are vulnerable if discretionary spending by consumers and/or advertising from other businesses dries up in a downturn (which I believe is coming when the market stops levitating).
I wish I had the chance to invest in Stripe, SpaceX or Deliveroo in an early IPO, but it seems many of the really successful companies have no need of one and stay private for a long time. Sometimes it feels like an IPO is a chance for early investors to cash out of a popular but loss making service at the expense of retail investors. I’d be wary of a lot of these very high valued yet loss making companies for this reason - investing is a bet they can convert free users into cash, which is a very challenging proposition.
Totally agree, not sure how you can be losing money yet still be valued at $12 billion, surely that means all your value has been pumped in?
I expect newer up and coming companies to be losing money at first (think Monzo and our own Freetrade) as they establish themselves - but at $12 billion you should be past that stage? Especially after 10 years.
An interesting take on Pinterest’s valuation -
I think it’s a smart move for them to have a down round when listing, they need the protection of the institutions for a successful first week/month, ideally getting the momentum so they don’t plummet as soon as the support ends. Having a down round would help persuade a large firm to take on the risk.
I personally stay away from day one IPOs, it’s extremely unpredictable for my liking. Yeah that’s when you can make big gains but also wipe out a lot of your portfolio in a $SNAP
I wish them all the best but I’ll definitely be an observer and not take part.