![]() ![]() They are positioned to leverage a few different secular growth themes – from improving their creator economy to improving their ad sales, and even looking abroad at international monetization. Why are these analysts excited about Pinterest, though?ĭespite a poor digital advertising landscape at Pinterest (and online as a whole), analysts believe that the potential for this company is still strong. And with the latest upgrade from Sheridan, the company has experienced a strong week with a 12% gain. Then, early this week, Piper Sandler analyst Thomas Champion provided a slightly optimistic upgrade raising his price target up $1. While there have been no concrete reports as to the validity of these rumors, the hype alone led to a rally for Pinterest’s stock. Then, after one investment firm (Elliot Management) took a large stake in Pinterest, the acquisition rumors began. Their co-founder and CEO stepped down, replaced by a former Google executive. At that point, Pinterest was experiencing some big changes. The company started the year off with a steady decline until the stock price bottomed out at around $17/share in the summer months. If you’ve been keeping track of Pinterest news, you know that there has been a ton of volatility in the stock’s price in 2022. As a result, he’s moved his price target up from $24 to $31. In fact, Eric Sheridan of Goldman Sachs is expecting as much as a 25% price spike in the near term. ![]() One analyst there believes that the company’s stock is on the brink of a big surge. Pinterest’s stock will list on the New York stock exchange under the “Pins” ticker symbol.Everyone’s favorite social media service for finding inspiration just got an upgrade from Goldman Sachs. ![]() Their shares will have 20 votes a share compared with public investors, who will get one vote a share. As with many other founder-led technology companies, Pinterest will use a dual-class structure that ensures management and existing investors retain control of the company. Pinterest was founded in 2010 by Ben Silbermann and Evan Sharp, who are the company’s CEO and chief product officer, respectively. It had a loss of $63m in 2018, compared with a loss of $130m in 2017. The San Francisco company had revenue of $756m last year, a 60% bump from 2017. Pinterest makes advertising revenue when businesses promote pins in users’ feeds. ![]() That means it’s avoided the privacy tangles that have ensnared companies like Facebook. It doesn’t push users to add friends or build connections. Pinterest has long shunned the label of being a social network. The platform allows people to search for and “pin” images that interest them, whether it’s fashion, sports, pets or travel. Pinterest, which launched in 2010, claims more than 250 million active monthly users and more than 2bn monthly searches. Its larger rival, Uber, lost $1.8bn last year and WeWork, the office rental company, lost $1.9bn. Lyft lost $911m in the year before its IPO, the most money ever lost by a company ahead of a share sale. But unlike many of its peers the social media company is not hemorrhaging cash. Pinterest will be followed by even larger share sales from companies including Airbnb, Uber and WeWork. They have since recovered and are now trading at a small premium to their initial $72 sale price. Lyft’s sale was enthusiastically embraced by investors but stalled on its second day as Lyft’s share price fell below their IPO price. The sale comes after Lyft, the ride sharing technology company, went public late last month. The $9bn valuation for the whole company is $3bn less than the $12bn Pinterest was valued at in 2017 when it last raised money. According to the company’s filing Pinterest plans to sell 75m shares at a price of between $15 and $17. ![]()
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