After hours: 7:13PM EDT
|Bid||25.20 x 1000|
|Ask||25.30 x 2900|
|Day's Range||24.27 - 25.60|
|52 Week Range||23.05 - 36.83|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 31, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||33.26|
(Bloomberg) -- Goldman Sachs is lining up buyers for an overnight sale of 4.68 million Pinterest Inc. shares, a person familiar with the matter said. Pinterest fell 1.1% in post-market trading.The shares are being offered on behalf of an unknown holder on the same day Pinterest’s IPO lockup period expired. The six-month selling restriction had applied to insiders and other pre-IPO shareholders.Shares are offered at $25.00 to $25.25 each, the person said, a maximum 2.23% discount to Tuesday’s closing price.To contact the reporter on this story: Drew Singer in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Brad Olesen at email@example.com, Jennifer Bissell-LinskFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares of Pinterest Inc. sank 4.5% toward a 4 1/2-month low in morning trading Tuesday, as the "lock-up period" following the online bulletin-board company's initial public offering has expired. Despite the selloff, the stock was still trading 30% above the $19 IPO price. The company went public on April 18, and the company said executive officers, directors and holders of "substantially all of our common stock" had entered into "lock-up" agreements to net sell any stock for 180 days. Meanwhile, Zoom Video Communications Inc. shares shed 2.0%, as the videoconferencing company also went public 180 days ago on April 18. Pinterest's stock has slipped 7.2% over the past three months and Zoom Video shares have tumbled 30.4%, while the Renaissance IPO ETF has lost 13.2% and the S&P 500 has eased 0.6%.
Entrepreneur brothers Courtney and Carter Reum's three-year-old venture firm announces a new fund, backed by Sir Richard Branson, Arianna Huffington and Hong Kong billionaire Silas Chou.
It’s been rough sledding for 2019’s slate of newly public technology companies. In August, Barron’s cautioned many of this year’s hottest IPOs were facing big tests with their so-called stock lockup agreements about to expire. The lockup expirations typically occur six months after an IPO.
Pinterest (NYSE:PINS) is down 30% from its all-time high of $36.83/share with Pinterest stock currently trading around $25.80/share, well above April's IPO price of $19/share. The social media platform continues to see explosive growth.Source: Nopparat Khokthong / Shutterstock.com But the upside potential could already be priced into shares. Based on valuation, it seems that investors may be better off waiting for lower prices before diving into PINS stock.Let's take a closer look, and see why now may not be the time to buy Pinterest stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Turning PINS into DollarsFor the quarter ending June 30, 2019, sales grew 62% from the prior year's quarter to $261.2 million. The company continues to generate operating losses. But based on analyst consensus, the company could reach profitability by next year. * 10 Super Boring Stocks to Buy With Super Safe Returns What kind of profitability can we expect in the future? Back in June, Wedbush's Ygal Arounian estimated EBITDA could soar to $260 million by 2022. But considering the company's enterprise value ($12.3 billion), this implies a rich valuation.Pinterest continues to improve monetization. The average revenue per user went up 29% YoY. The company has just started building out its international ad sales platform. With the bulk of users located outside of the United States, this implies a significant runway for growing the ad business.PINS is also expanding beyond traditional online advertising. Thanks to AI technology, the company now has the capability to identify purchasable items in images hosted on the platform. This opens the door to another material revenue stream. These factors will be material in sustaining the current growth trajectory.On an enterprise/sales (EV/Sales) basis, shares trade a premium to social media peers. In addition, there is no guarantee PINS won't stumble in its quest to grow. Let's take a closer look at PINS stock valuation, and see how it stacks up to peers. Pinterest Stock Richly PricedPinterest stock currently trades at an EV/Sales ratio of 13.3. This is in line with social media competitor Snap (NYSE:SNAP). Snap trades at an EV/Sales ratio of 13.3 as well. However, the other public social media names trade at lower valuations:Facebook (NASDAQ:FB): EV/Sales of 7.6Twitter (NASDAQ:TWTR): EV/Sales of 8.3But Pinterest's explosive growth may justify this. However, expectations of 50%+ growth over the next few years leaves little room for error. Shares could take a nosedive if the growth story faces a headwind.What sorts of headwinds could PINS stock face? A new social media platform could gain critical mass, stealing share from Pinterest. Growth could cool sooner than expected. Even if PINS stock posts decent sales growth numbers (~20% range), based on the current share price this would be below expectations.An additional downside risk is the end of the IPO lock-up period. Pinterest's will expire on October 15. This means more insider shares could be sold, creating a negative short-term impact. Pinterest Stock Has Gotten Ahead of ItselfPinterest has tremendous growth potential. It continues to post 50%+ sales growth and has only started monetizing its overseas user base. The social media platform's focus on consumer items is like catnip to advertisers. But the stock price seems has gotten ahead of itself. While the company has runway, it unlikely will become as big as Facebook or Twitter.This could be due to the niche nature of Pinterest's business. As InvestorPlace's Josh Enomoto wrote on Oct. 2, women predominate Pinterest's user base. Without a more diversified user profile, it may be hard for Pinterest to scale into a Facebook or Twitter-sized company.On the other hand, I could be Pinterest being a takeover target for big tech. The social media companies could easily buy Pinterest, integrate its back-end into their existing infrastructure, and maximize the platform's value.A buyer such as Amazon (NASDAQ: AMZN) could use it as a vehicle to further grow its ecosystem. While the company sells at a high valuation, it may be worth the price for the right buyer.But other than that, I am skeptical on Pinterest stock. Past results have been strong, but I can easily see grow start to cool once international monetization is complete. With slower growth, shares will either tread water or head lower. Add in the expiration of the IPO lock-up, and today does not sound like the time to buy PINS stock.Keep Pinterest stock on your radar, but wait for lower prices for a better entry point.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Super Boring Stocks to Buy With Super Safe Returns * 10 Winning Stocks to Buy and Stick With for the Long Haul * Don't Give Up on These 4 Cannabis Stocks The post Pinterest Stock Is Richly Valued and Running out of Room to Run appeared first on InvestorPlace.
Although the masses and most of the financial media blame hedge funds for their exorbitant fee structure and disappointing performance, these investors have proved to have great stock picking abilities over the years (that's why their assets under management continue to swell). We believe hedge fund sentiment should serve as a crucial tool of an […]
Zoom Video is trading significantly higher than 2019's other IPO debutants. Zoom stock had an offer price of $36 and is trading at $73.52—104% higher.
Pinterest went public on April 18, smack in the midst of the unicorn IPO parade of the past six months that included Lyft, Slack, Uber, CrowdStrike, Smile Direct Club, and Peloton). Every one of those stocks is trading down from its IPO price. Except for Pinterest.
Pinterest Inc (NYSE: PINS), the not-quite social network, is a fast-growing and nearly profitable platform for online image searches. The senior vice president of engineering already spoke of steps the image catalogue app is taking to become more shoppable. The social media landscape is constantly evolving and changing based on consumer preferences.
In a sharp turnaround from earlier this year, stock performance for newly public companies is the worst it has been since at least 1995. This trend has led many companies to delay or reassess their IPO plans. Tech startups and other companies that went public in 2019 have seen their shares trade about 5% above their prices at the time of their IPOs while the S&P 500 has returned nearly 18% year-to-date (YTD) through Monday, per Dealogic, as cited by the Journal. That trailing IPO performance is a reversal from earlier in 2019, when IPO stocks were dramatic outperformers.
At first look, youth-centric social media firm Snap (NYSE:SNAP) might appear as a contrarian opportunity. In late July, management delivered unexpectedly robust results for its second quarter of 2019. Following that positive news item, the SNAP stock price jumped higher. Therefore, the current volatility in shares may be due to simple market overreactions.Source: dennizn / Shutterstock.com And many factors exist that bring a general sense of fear -- or at least hesitation -- among investors. First and foremost, you can't turn on the television or surf the web without hearing about some political scandal. Beyond the heightened drama in Washington, the major indexes have had to absorb growing tensions in the U.S.-China trade war.Obviously, these factors don't help Snapchat stock. At the same time, bulls may argue that this is broader noise that has simply taken SNAP down in its wake. Once these issues fade, shares should move higher.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnother reason why speculative bulls may find confidence in the currently weakened SNAP stock price is collective commiseration. Specifically, Snapchat stock isn't the only victim among social media firms. The undisputed sector leader, Facebook (NASDAQ:FB), has been volatile ever since Snap released its Q2 results. Additionally, the presidential platform Twitter (NYSE:TWTR) has absorbed a decline since early September.Stated differently, most investors presumably would question SNAP stock if it were the only volatile social media investment. Clearly, it's not. So, once this sector noise fades as well, Snapchat should resume the upward trajectory that its second-quarter report implied. * Do These 7 Retail Stocks Make the Grade? While I respect the company's turnaround efforts -- Snapchat stock is up a remarkable 175% year-to-date -- the broader picture suggests caution. Let's have a look at why. Narrow Demo a Liability for SNAP StockWhile social media has transformed our lives, we must remember one thing about the companies that provide such services: they live and breathe on traffic.Without it, you have no interest. Without interest, you have no engagement. And without engagement, you simply don't have a case to present to advertisers as to why they should risk their marketing dollars on you. That's the universal narrative behind Snapchat stock and its peers.Of course, I'm not breaking new ground with the above statements. However, if the broader markets continue to fall -- the Dow Jones Industrial Average lost 3% through mid-week -- it spells economic troubles. If that's the case, advertisers will almost surely tighten their belts. Unfortunately, that wouldn't spell great things for demographically narrow social media investments like SNAP stock.Here are some statistics that I found quite interesting, courtesy of Omnicoreagency.com: * "69% of U.S. teens say they use Snapchat" compared to "24% of U.S. adults use Snapchat." * "41% of U.S. teenagers say Snapchat is their preferred social media platform" compared to "20% of U.S. college students use Snapchat." * "90% of Snapchat users are 13-24 years old" compared to "39% of Snapchat users are ages 18-24."What's the common pattern here? The older you are, the less likely you are to find value in Snapchat. Logically, this is a big problem for the SNAP stock price longer term. While advertisers and marketers may target youth, youth by itself doesn't do much.Indeed, I argue that it's more of a liability unless you can retain the young demo as they age. After all, the older you get, the more income you're likely to earn, which benefits advertisers. But there's no evidence that SNAP is making inroads with the older crowd. Not Just a Problem for Snapchat StockBear in mind, I'm not picking on SNAP stock arbitrarily. Recently, I used the same argument against Pinterest (NYSE:PINS). * 8 Stocks to Buy Offering Both Dividends and Growth Like other publicly traded social media names, Pinterest shares have tumbled over the last few weeks. However, what makes PINS riskier than Facebook or Twitter is their demographic situation: Pinterest caters heavily toward women.Don't read this like I have something against women or young people. Rather, put yourself into the shoes of a prospective ad client. Under a strained economy, you must have your dollars stretch to the widest degree possible. But with Snapchat and Pinterest slanted mightily toward youth and females respectively, these two platforms aren't ideal.That said, I'm not opposed to picking up Snapchat stock on a dead cat bounce play. But until management figures out its demo situation, I don't view SNAP as a confident investment.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Important IPO Stocks to Watch for the Long Run * 7 High Volatility Stocks to Buy as the Market Rebounds * 7 Dow Jones Industrial Average Stocks to Sell The post Why Snapchat Stock Could Use a Touch of Gray appeared first on InvestorPlace.
Pinterest, Inc. (PINS) will release financial results and a letter to shareholders for the third quarter 2019 on Thursday, October 31, 2019 after market close. The company will host a Q&A conference call to discuss these results at 2:00 p.m. PT (5:00 p.m. ET) on the same day. A live webcast of the conference call and related earnings release materials can be accessed on Pinterest’s Investor Relations website at investor.pinterestinc.com.
It's been a rough year for the IPO market. While most promising unicorns have sputtered out of the gate, one analyst has a reason to be optimistic going forward.
What investors need to know about newly public Peloton (PTON). And a broader look at what's going on with some other 2019 IPOs such as Uber (UBER) and Beyond Meat (BYND) to help make sense of the WeWork debacle and more.
One of newly public firms’ favorite tools to boost executives’ control may also be a long-term liability, according to Goldman Sachs.
In many cases -- particularly among high-flying software and Internet stocks that had seen massive run-ups -- these declines have a lot to do with the market taking the froth out of richly-valued names. Valuation: Roku's enterprise value (market cap minus net cash) is equal to about 10 times its expected 2020 platform (software and services) revenue, and about 7.5 times its expected total revenue. The Bull Case: Earlier this month, I argued that Roku felt richly valued following a huge 2019 run-up.
Oct.14 -- Early investors in Pinterest Inc., the fifth best-performing IPO this year among technology and communication stocks, have their first opportunity to cash in some gains. Bloomberg Intelligence's Jitendra Waral has more on "Bloomberg Technology."