Pinterest files for IPO

The photo social media app reportedly files papers to go public later this year.

Pinterest is getting closer to going public this year. The social media app has reportedly confidentially filed for an initial public offering (IPO) with the US Securities and Exchange Commission(SEC).

Why is Pinterest filing for an IPO now?

Because of its high profits and popularity, Pinterest feels now is the right time to go public. Though there were rumours before, reports of the paperwork filing with the SEC makes the IPO news more official.

The very popular US online company was started by Ben Silbermann, Evan Sharp, and Paul Sciarra in 2010. The app connects users to pictures they’re interested in, so they can ‘pin’ or add the photos to their own personal boards. Pinterest has 250 million monthly active users and is visited by 40% of social media users. The website has also branched out into e-commerce by enabling visitors to directly buy items they like from the service. For example, if a customer likes or ‘pins’ a pair of jeans from Levi’s, they can click on a picture of the jeans to purchase them.

The company is considered a ‘unicorn’ worth $1 billion and has been valued at $12 billion. The corporation has also raised $ 1.5 billion in funding. The site has reportedly hired Goldman Sachs and JP Morgan Chase to lead its IPO.

Will Pinterest have a successful IPO?

In a year crowded with other unicorn IPO’s like Uber, Lyft, and Postmates, it could be hard for Pinterest to stand out when it goes public.

Andrew Lipsman, principal analyst at eMarketer, a data research company, noted that Pinterest has to demonstrate that its advertising can drive users to purchase items from the site.

‘Ultimately, it will have to prove that its ads are effective in building brands and driving commerce,’ said Lipsman.

Pinterest co-founder, Evan Sharp, said that the company would continue to be profitable because it be can more than a visual search engine.

‘The lasting impact of visual search won’t be any specific product or feature, rather what it enables people to do: turn anything they see into something they can use to discover more on the internet,’ said Sharp.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.