Social media company Pinterest - on the eve of its hotly-anticipated IPO Thursday - priced its shares at $19 each, valuing the company above $12 billion.
The share price sitting higher than the $15 to $17 range the company set just over a week ago… and an indication that the IPO market - which got off to a shaky start in 2019 - could be finding its footing, says Reuters correspondent Josh Franklin.
(SOUND BITE) (ENGLISH) REUTERS CORRESPONDENT JOSHUA FRANKLIN SAYING: "There was a lot of expectation that it was going to be the biggest year ever for the tech IPO market, with all these companies - Uber, Lyft, Pinterest - going public this year.
Lyft was the first to go public, and after looking at first like a big success, a home run for Lyft, it's really struggled in trading, which kind of spooked some people a little bit.
So, Pinterest is going to be an interesting test for the market again." Pinterest, like Lyft and Uber, has yet to turn a profit.
Its 250 million users are shy of Twitter's more than 300 million, and lag way behind the billion-plus on Instagram and Facebook… but many Pinterest fans are women looking to buy products, something the company hopes will help spur ad sales.
(SOUND BITE) (ENGLISH) REUTERS CORRESPONDENT JOSHUA FRANKLIN SAYING: "The upside if you're an investor is you get to tap into what people would hope is a growth-y company.
Revenues at the company I think grew 60% last year - and it kind of speaks a little bit to this theme about how consumer habits are changing in terms of how they're purchasing and sourcing new products.
Normally, Pinterest is more associated with wedding photos and food and haircuts and home décor and things like that, and I think what they're hoping to try to move into is more things in financial services, in media, and the auto industry as well.
' The risks?
As with any social media company, data privacy could be an issue - as well the brand simply cooling off.
Another tech company, video-conferencing service Zoom, priced its shares at $36 a piece Wednesday according to reports.
The biggie of this year's tech bunch - Uber - could go public as soon as this month.
Pinterest begins trading Thursday on the New York Stock Exchange.