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StockBeat - Pinterest, Zoom Surge, Adding Billions to Market Cap on Debuts

Published 04/18/2019, 01:04 PM
Updated 04/18/2019, 01:20 PM
© Reuters.

© Reuters.

Investing.com - Pinterest and Zoom rallied after making their stock market debuts Thursday, adding billions to their market caps.

Social media company Pinterest (NYSE PINS) surged 27% to $24.20, boosting its market cap above $12 billion from its IPO market cap of $10 billion.

The surge in the stock underscores investor confidence that Pinterest, which went public at $19 late Wednesday, is less likely to face the same of regulatory scrutiny as other social media companies as it sets about differentiating itself.

"We really think about it as a utility," Pinterest CEO Benjamin Silbermann told CNBC. "We’re less focused on making it a place where you talk to your friends every day or you follow celebrities."

Heading into the IPO, D.A. Davidson initiated coverage of Pinterest on Monday with a neutral rating and a $16.50 price target, citing the company's "impressive visual platform."

Pinterest's "impressive visual-based discovery platform" for merchandise and advertisers is a “powerful combination” that could drive revenue and profit growth over the long run, D.A. Davidson said.

Video conferencing software company Zoom Video Communications (NASDAQ:ZM) surged 75% to $65 on its trading debut, taking its market cap above $16 billion. It went public late Wednesday at $36.

Zoom, unlike some recent IPOs hitting the market including Pinterest and Lyft (NASDAQ:LYFT), is profitable. The company reported $7.58 million in net income last year on revenue of $330.5 million.

Analysts have touted Zoom as a potential leader in video conferencing over rivals like LogMeIn (NASDAQ:LOGM).

Latest comments

I always thought pinterest was a real informative app. most convenient
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