International users account for 80% of Pinterest’s total user base, and the company will have to expand its ARPU metrics consistently to drive revenues higher. Pinterest is a visual discovery engine, and the social-media company is valued at a market cap of $17.63 billion. It has increased sales from $755.9 million in 2018 to $2.57 billion in 2021, indicating an annual growth rate of 50%. The famed venture capital firm now owns 43.5 million shares, or 9.6 percent, of the company, which are worth $1.08 billion. Ben Silbermann, Pinterest’s co-founder and CEO, owns 51.6 million shares, or 11.4 percent, of the company.
It may seem like a lot, but it will actually be eight percent less than the company’s private-market valuation at its last fundraising in 2017. PINS stock is reasonably valued at current prices given its price to earnings multiple. Analysts expect PINS stock to rise by more than 50% in the next 12-months.
Bessemer Venture Partners
The Menlo Park, Calif.-based venture capital firm bought $10 million worth of Pinterest shares during its series A fundraising round in 2011 for just $0.17 a piece. This means that trading over the last 200 trading days has placed the company in the lower half of stocks with 81% of the market scoring higher. In the Internet Content & Information industry which is number 130 by this metric, PINS ranks better than 27% of stocks. So, advertisers will now target customers with a higher interest, thereby improving value for all stakeholders. MyWallSt is a publisher and a technology platform, not a registered broker-dealer or registered investment adviser, and does not provide investment advice.
Pinterest stock is down almost 70% from record highs, making the social-media stock a compelling buy for value and growth investors. These three firms co-led a $186 million fundraising round in May 2015 when Pinterest shares were $21.54 each, according to Pitchbook data. Its total stake now accounts for 9.8 percent of the company and is worth up to $1.1 billion.
And a third co-founder, former venture capitalist and Pinterest’s first CEO, Paul Sciarra, owns 42.4 million shares, or 9.3 percent, of the company. After the IPO, he will be harvesting just above $1 billion. He left Pinterest’s executive team in 2012 but remained as an advisor. Since its founding in 2010, Pinterest has raised a total of $1.5 billion in private equity funding. In its IPO filing, the company disclosed the names of all investors who own more than five percent of the company.
Stocks have been volatile in recent weeks as investors continue to monitor the Russia-Ukraine conflict and its impact on commodity prices. Pinterest, Inc. engages in the operation of a pinboard-style photo-sharing website. It allows users to create and manage theme-based image collections such as events, interests, and hobbies. The company was founded by Benjamin Silbermann, Paul C. Sciarra, and Evan Sharp in October 2008 and is headquartered in San Francisco, CA. Strong earnings reports from Snap and Pinterest saw both companies soar after initially spiraling following Facebook’s torrid Q4 report.
Initial public offerings are usually champagne-popping events for founders and investors of the concerned company. But when online scrapbook Pinterest makes its debut on the New York Stock Exchange on Thursday, it will be a bit complicated. Let’s see if the pullback provides investors with a buying opportunity right now. New York-based FirstMark was one of Pinterest’s earliest investors.
— Top Stock Alerts (@TopStockAlerts1) April 13, 2022
When the IPO finalizes, it can expect to split a fee equivalent to four to seven percent of the total funds raised with other underwriting banks. Silbermann’s earliest partner and college classmate, Evan Sharp, owns 9.5 million shares, or 2.1 percent, of Pinterest, which will be worth up to $226 million. As in the case of any startup, founders usually keep a sizable stake in their company whether or not they take on executive roles.
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Pinterest’s MAUs declined by 6% year over year to 431 million in Q4 of 2021. The company’s user base peaked at 478 million in Q1 of 2021 and has since fallen steadily in the following nine months. One key reason is the emergence Will Meta pull the Pinterest stock down? of other social media platforms such as TikTok, the unwinding of the pandemic, and lower search traffic. Bessemer Venture is Pinterest’s largest shareholder, controlling 59.5 million shares, or 13.1 percent, of the company.
- After the IPO, he will be harvesting just above $1 billion.
- So, advertisers will now target customers with a higher interest, thereby improving value for all stakeholders.
- And a third co-founder, former venture capitalist and Pinterest’s first CEO, Paul Sciarra, owns 42.4 million shares, or 9.3 percent, of the company.
- When the IPO finalizes, it can expect to split a fee equivalent to four to seven percent of the total funds raised with other underwriting banks.
After Thursday, his stake will be worth up to $1.29 billion. That’s a step back from his latest Forbes-estimated net worth of $1.6 billion, but at least he can still party in the Silicon Valley billionaire’s club. Exactly a week ago, Pinterest revealed in an SEC filing that it planned to sell 75 million shares of the IPO for $15 to $17 apiece. At the upper end of that range, Pinterest will be valued at $11.3 billion.
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Its adjusted earnings are forecast to expand from $1.13 in 2021 to $1.4 in 2023. We can see that PINS stock is trading at a forward price to 2022 sales multiple of 5.60x and a price to earnings multiple of 24.4x, which is quite reasonable. Analysts https://xcritical.com/ tracking PINS stock have a 12-month average price target of $41.86, which is 56% higher than its current trading price. Pinterest’s attractive valuation and massive upside potential coupled with its increasing ARPU make it a top bet right now.
— GetOnTrade (@GetOnTrade) April 14, 2022
Pinterest Inc is higher by Thursday morning, with the stock increasing 1.09% in pre-market trading to 23.2. PINS’s short-term technical score of 20 indicates that the stock has traded less bullishly over the last month than 80% of stocks on the market. In the Internet Content & Information industry, which ranks 129 out of 146 industries, Pinterest Inc ranks higher than 36% of stocks. Pinterest Inc has risen 2.59% over the past month, closing at $24.89 on March 17. During this period of time, the stock fell as low as $22.68 and as high as $27.95. Analysts expect revenue to rise by 22% to $3.14 billion in 2022 and by 27.7% to $4 billion in 2023.
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Going forward, Pinterest might also add AR or augmented reality components to expand its monthly active users and drive top-line growth higher. Pinterest reported sales of $847 million and adjusted earnings of $0.49 per share in Q4 of 2021. Comparatively, Wall Street forecast sales of $827 million and earnings of $0.45 per share in the quarter.
It wrote its angel check to the startup in 2010, even before the app prototype was launched.