Pinterest will debut on the public market this spring and is seeking a valuation of $9 billion. When it goes live, investors will be able to buy shares for $15 to $17 a pop. Here’s what you need to know about Pinterest IPO (PINS) and whether or not you should consider investing.
About Pinterest IPO
As mentioned above, Pinterest is currently seeking a valuation of $9 billion. The company’s valuation was said to be $12 billion when it completed its last round of funding a little more than two years ago.
There will be 75 million Class A shares sold at $15 to $17 per share on the New York Stock Exchange. Pinterest plans to use a dual-class structure that will allow major stakeholders voting power within the company (Class B). This will include co-founders Benjamin Silbermann and Evan Sharp. Other major shareholders include Andreessen Horowitz and FirstMark.
The Year of IPOs
Just last week, Lyft IPO debuted on the public market. Pinterest is joining a large wave of highly-anticipated tech-based IPOs to hit the NYSE this year. Uber and Slack are two more big names expected to debut on the market as well.
Should You Invest?
IPOs can be iffy when it comes to returns. If you’re considering investing in the Pinterest IPO, talk to a financial advisor and get a feel for your risk tolerance. See if there is a better way to invest your money before you throw it into a new company on the market.
You may also consider Warren Buffett’s advice when it comes to IPO investments. The seasoned investor recommends staying away from IPOs altogether. Buffett compares investing in IPOs with playing the lottery. Sure, people win sometimes but they are more likely to lose. But, as with most things, the same strategy won’t work for everyone.
Readers, are you interested in seeing how the Pinterest IPO performs?