Unicorn Start-Ups Pinterest and Zoom Had Impressive IPOs


By: Noah Judd
06:14 04/24/2019

Pinterest, an image sharing platform, and Zoom, a videoconferencing company, are two big-tech names that went public this week. The high profile tech companies, also known as “unicorn start-ups,” oftentimes have a rocky start when headed to the public markets. Yet, on IPO day investors were eager to get a piece of both.

San Francisco based company, Pinterest, is an “image discovery” service. This means that its more than 250 million users can “pin” (post) images they find interesting on the digital pin board. In turn, other users can browse collections for ideas or inspiration.

On opening day, shares in the digital pin board jumped over 28 percent. Pinterest’s stock began trading at $23.75, which was above the original public offering price of $19. At the end of the day it finished at $24.40.

Zoom, a San Jose based video service built on top of cloud computing facilities, is a modernized version of services we have seen for decades. Some predecessors include Cisco Systems’ WebEx or the omnipresent Polycom conference room video systems.

Zoom also went public with tremendous interest. Private investors last valued the company’s shares at $1 billion— the threshold for a private start-up to achieve unicorn status. This value skyrocketed 80 percent in early trading. By the end of the day they were up 72 percent and closed at $62.

Ahead of Pinterest and Zoom’s IPOs, it was unsure if investors were willing to risk it with the latest tech unicorns. Lyft, which went public in March, had a troubled start. Now the future may be looking brighter for other tech giants expected to go public this year— Uber being one of them.


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