Pinterest IPO Percolates
Pinterest made its pitch that it’s the future of advertising and seems to have found some believers — at least on Wall Street. The company, which expected to price its initial public offering at between $15 and $17, is coming in above that range, according to multiple reports, valuing the tech darling at over $9 billion. That is a bet by the big-money crowd that the company will continue to grow quickly and pick up more advertising dollars as brands look to move their marketing budget online. Pinterest’s revenues shot up 60 percent to $755.9 million last year as it gained share of the ad market — but so far the company is more growth engine than profit engine, having logged net losses of $63 million last year. Users browse collections of recipes, craft and style ideas, among other things, on Pinterest and “pin” ideas and images to create their own virtual vision boards. For beauty brands, luxury goods and other consumer product companies, this sort of personalized curation offers an opportunity to directly target consumers. “Especially with the fashion industry, they like it for the fact that there’s a lot of visual impact,” said Denning Rodriguez, of counsel at Holland & Knight LLP, who represents fashionFollow WWD on Twitter or become a fan on Facebook.
from WWDWWD http://bit.ly/2GsEu3h
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