Pinterest shares jump 30pc as investors rush into $12.7bn IPO

Source David Foster  Yahoo Finance

Source David Foster Yahoo Finance

Shares of Pinterest Inc surged nearly 30 percent in their stock market debut on Thursday, valuing the online scrapbook company at around $16 billion and signaling investor appetite for new tech listings. Shares leapt from its offering price of $19 a share to as high as $25 in early trading. Yet the Pinterest IPO is an exception: One of the social media company's largest shareholders is Fidelity, which owns Pinterest stock on behalf of many retirement savers, whether they know it or not. The company IPO'd today alongside video conferencing company Zoom, which is also seeing a huge boost from Wall Street.

"It is a very favorable market at the moment", Zoom Chief Financial Officer Kelly Steckelberg said in an interview.

The San Francisco-based company said part of its strategy is to expand into new advertising markets, such as appealing to auto companies and financial services firms that want to reach its base of 250 million monthly active users. The first to set the stage was Lyft, which is down significantly from its opening price despite an initial pop. It earns money through advertisements, which are placed among the "pins" or posts that users upload on the site.

Pinterest said it had revenue of $756 million past year and a loss of $63 million.

Third casino in Mississippi's Tunica County to close
Sports betting was something everyone was hoping for when it was legalized last May . Rivers Casino in Pittsburgh led with nearly $12 million in bets.

Pinterest, launched in 2010, is a virtual bulletin board platform, with users decorating their boards with pictures showcasing interests including food, fashion, travel and lifestyle.

Pinterest was showing a clear path to profitability but was overvalued, said Haran Segram, professor of finance at NYU Stern School of Business.

The market action comes amid an expect wave of "unicorns", or startups valued at over $1 billion, hitting the public markets.

Pinterest's IPO was underwritten by a 12-member team led by Goldman Sachs and JPMorgan.

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