Pinterest, Inc. (PINS): All You Need to Know About This Technology Company
Pinterest is a social media service and image sharing company located in San Francisco, California. With an active user base of 400 million and still growing, it is a New York stock exchange-listed public company. It was founded in Palo Alto by Ben Silbermann, Paul Sciarra, and Evan Sharp in December 2009. It currently has around 1600 employees.
A mere nine months after its prototype launch in March 2010, Pinterest was on the path to progress with 10,000 users. The company grew manifold at a rapid pace—within a couple of years, it claimed a position amidst the top ten social networks. The increase in the number of users rose meteorically to 70 million in July 2013 as a result of the Android Pinterest app launch. Its phenomenal growth and immense popularity further aided it to win a lot of accolades and awards. The company also came in the limelight to gain the requisite attention from media and investors alike.
Venture capitalist investors soon started eyeing an opportunity to invest in Pinterest. Bessemer Venture Partners invested $10 million around the start of 2011. Not to lag behind, Andreessen Horowitz valued the company at $200 million and pumped in $27 million in October of the same year. Since its early years, it has received many rounds of funding.
Most of Pinterest’s revenue is earned via ads. It aids businesses via promoted pins that appear identical to user-generated pins. A Pinterest user receives the advertising message, as in, when they click on the promoted pins.
Pinterest also has monetized pins in its arsenal. Monetized pins are custom pins that allow a consumer to purchase a product/service directly via Pinterest, without ever leaving its platform. It, thus, earns on every transaction.
Pinterest raked in around $1.4 billion via its IPO on April 18, 2019. The shares started and finished selling at $19 and $24, respectively. The IPO swelled its valuation to around $12.7 billion. It currently trades at around $61 per share on NYSE, with a rough market valuation of $36.82 billion.
The share prices have hit rock bottom since the IPO, courtesy of a couple of below-par earnings reports. However, it may be just ripe for savvy investor. Stock market pundits predict a surge is bound to happen anytime soon in 2021. Also, post-Covid-19, investor can surely expect an increase in the stock pricing of all stable and reputable companies.