Pinterest and Zoom Go Public
Pinterest(PINS 66.37 -1.84 -2.70%), the more anticipated of the two IPOs dropping today, started trading under the ticker symbol PINS.
Initially priced at $19 a share, the stock began trading at $23.75, up 25%, putting its market cap above $12 billion.
CEO Benjamin Silbermann said in an interview on CNBC following the debut that “Pinterest isn’t a social network.”
“We really think about it as a utility,” he said. “We’re less focused on making it a place where you talk to your friends every day or you follow celebrities.”
Silbermann said he is focused on expanding Pinterest’s global presence and making it a place where businesses can reach their target audiences.
“The really cool thing about advertising on Pinterest is that people are there to get inspiration and do things, and that often means buying,” Silbermann said. “So over the last couple years and for the foreseeable future we’re going to work on bridging that gap between seeing something inspirational and finding a product from a retailer that you trust at a price point that makes sense for you.”
Zoom(ZM 337.71 -11.90 -3.40%) began trading today under the ticker symbol ZM.
Zoom priced its shares at $36, above it’s raised range of $33-35 a share. Trading started way above that, over $55 a share and as of now trades at $63 a share.
Zoom provides remote conferencing services using cloud computing. They offer communications software that combines video conferencing, online meetings, chat, and mobile collaboration across any device.
Unlike many IPOs, Zoom is profitable. They broke even for its most recent fiscal year on revenue of $330.5 million, adjusted profit of $0.03 a share.
Zoom was founded in 2011 by a lead engineer from Cisco Systems and its collaboration business unit, WebEx. The founder, Eric S. Yuan, graduated from the Stanford University executive program and was previously vice president of engineering at Cisco for collaboration software development.
“Ten years ago, I was an engineering leader at a major technology company. I would visit customers, and they would tell me how unhappy they were with the technology in the videoconferencing market,” said Yuan. “This made me unhappy. There had to be something better — something designed for modern video communications, something that would deliver happiness. I knew that we would have to start from scratch to do it right,” Yuan said.