Pinterest Stock (PINS)

This Silicon Valley company combines online scrapbook pins and boards with social media. It is one of the 2019 “unicorns” – private tech startup companies that have raised more than $1 billion in venture capital.

A Brief History of Pinterest Stock

With Instagram off the market, Pinterest is the new darling of Silicon Valley. In 2009, Ben Silbermann and Evan Sharp began developing Pinterest. By 2010, Pinterest had around 5,000 users, which grew to millions by 2012, and 250 million in 2018.

In 2011, Pinterest was recognized as one of the top social media sites. A year later, it topped Tumblr – a microblogging and social networking website.

In 2017, Pinterest was valued at a little over $12 billion with an annual revenue of $500 million. One year later, it doubled its revenue to $1 billion in 2018. It’s no wonder that Pinterest was one of the most highly anticipated IPOs of 2019.

Pinterest stock made its debut in April 2019. The original predicted Pinterest IPO price was commonly between $15 to $17. However, with its strong demand for public shares, the finalized IPO pricing was $19 per share.

Pinterest Stock Risks and Analyst Concerns

The days immediately following a public offering is especially volatile. The market is attempting to find a balance between supply and demand. Pinterest’s stock price peaked at $35.29 and traded as low as $23.05 on its first day of trading.

Following Pinterest’s Q1 2019 release, Pinterest’s share price plunged 15%. It’s critical to keep in mind that Pinterest is a young business. While it looks promising, the bar is set quite high already. Continuing to impress investors will be a challenge, especially when it does not have a strong history of making profits or cash flows.

Finally, although Pinterest fervently does not consider itself a social media platform, it shares similar goals with Instagram, generating most of its revenue from ads. Furthermore, Pinterest lacks social media influencers and do not appeal to the growing Gen Z market, but rather towards millennials.

As Pinterest fends off competition from other tech stocks or social media stocks and attempts to break out of its tight trading range, analysts are cautiously optimistic about this unicorn.