Categories: MarketingWorkspace

Pinterest, Zoom Surge As Tech ‘Unicorns’ Return To Favour

Pinterest and Zoom traded sharply higher after their market debuts this week, indicating a renewed investor appetite for new tech shares after disappointments with firms such as Lyft.

Ride-hailing firm Lyft went public in March and is now trading well below its offering price, partly due to investor concerns about its steep losses, according to industry watchers.

But shares in Pinterest jumped nearly 30 percent, valuing the company at about $16 billion (£12bn), while Zoom Video Communications shares closed 72 percent above their IPO price of $36 on their first day of trading on Thursday.

Zoom’s chief financial officer, Kelly Steckelberg, said she saw the market as currently being “very favourable” to software-as-a-service companies, Reuters reported.


Zoom sells teleconferencing services, while Pinterest allows users to post interest-based collections of images.

Both pose a contrast to the typical “unicorn” – a firm valued at $1bn or more – in that such firms are often focused on rapid growth through heavy expenditures, leading to huge losses.

Pinterest had relatively low net losses of $63m in 2018, while Zoom is profitable and is still quickly expanding its user base.

By contrast, Snap, maker of the Snapchat app, lost $515m in the year before its market debut in 2017.

Pinterest, whose revenues are derived from advertising “pins” placed amongst user content, has also taken a far slower, more deliberate approach to revenue generation than social media firms such as Twitter or Facebook.

Advertising ‘challenge’

“We’re focused on building the best version of Pinterest we can over the next several years,” said Pinterest chief financial officer Todd Morgenfeld.

Some market analysts have said Pinterest could potentially show strong profits if it takes even 1 percent of the internet advertising market, whilst others were more measured.

Tom Forte, an analyst at D.A. Davidson, said the company has a “neutral” rating on Pinterest in part because the company is still developing its approach to advertising, an area in which it competes with giants such as Google.

He told CNBC television that Pinterest hasn’t yet made a serious effort to bring in revenues from users outside the US and that it would be a “challenge” for the company to do so.

Matthew Broersma

Matt Broersma is a long standing tech freelance, who has worked for Ziff-Davis, ZDnet and other leading publications

Recent Posts

Amazon Prime, Ring Services In US Impacted By AWS Outage

Big name services from Amazon including Prime Video, Ring doorbells and even the Amazon e-commerce…

12 hours ago

Meta Sued For $150 Billion By Rohingya Refugees

Meta sued for billions of dollars for not allegedly removing anti-Rohingya hate speech during 2017…

14 hours ago

Intel To List Self-driving Car unit Mobileye

Public offering planned for Intel's self-driving-car unit Mobileye next year, but Intel says it will…

16 hours ago

Virgin Media O2 Completes Gigabit Network Upgrade

Ultrafast broadband. 15.5 million homes can now access speeds of 1.1Gbps, after Virgin Media O2…

17 hours ago

Craig Wright Wins US Case Over Bitcoin Inventor Claim

Computer scientist who claims to be Satoshi Nakamoto, wins US court case against former partner,…

18 hours ago

300 Spar Stores Impacted After Cyberattack On Supplier

Family run firm in Preston, Lancashire suffers cyberattack, which impacts tills and IT systems for…

20 hours ago