Pinterest is pinning back its valuation.
The social media company set a price range Monday for its initial public offering of 75 million shares.
At $15 to $17 a share, that gives Pinterest a market valuation of about $11.3 billion -- short of the $12 billion valuation it secured during its last private fundraising two years ago Reuters reporter Joshua Franklin: SOUNDBITE: REUTERS NEWS CORRESPONDENT, JOSHUA FRANKLIN (ENGLISH) SAYING: "I think it's more that they're being conservative.
You know, you always as a company you don't ever want to raise money doing an IPO in a down round and go public at a lower valuation than you did before.
But I think with everything that happened with Lyft last week going public, you know at a big valuation relative to its previous fundraising round, it definitely didn't set a positive tone." Pinterest's conservative pricing comes just one week after Lyft's stumble.
The share price of the ride-hailing firm fell below its IPO price on its second day of trading as a public company.
It has since bounced back.
Like Uber and other "unicorns" sporting valuations over $1 billion set to go public, revenues at Pinterest are ballooning but the company is still losing money.
That's a predicament for investors who fear missing out on fast-growing companies but also fret about unproven economics.