Pinterest IPO Soars, But Don’t Expect the Market to Follow

Pinterest found the getting is still good on Wall Street — but the company’s IPO could also be a sign that the stocks are getting ready for a breather. The image-sharing platform’s shares priced at $19 — $2 above the high end of its expected range — and the stock shot up 27.3 percent to $24.18 in the first hours of trading. That tagged a $12.7 billion valuation on Pinterest, which billed itself as a platform where adds and context happily comingle. The company has argued that its well positioned to keep growing revenues as consumer brands move more of their marketing budgets online. Pinterest logged revenues of $755.9 million last year and although it still has plenty of room to grow, it also has plenty of competition — Google, Facebook and Amazon’s advertising revenues weighed in at roughly $180 billion last year. While the government shutdown in January delayed some IPOs, a flurry of offerings could also be a sign that companies sense a top in the market and are looking to take advantage and cash out. Videoconferencing company Zoom also went public on Thursday while Farfetch went public in the fall and Levi Strauss & Co. held its offering last month. Additionally, VF Corp.

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