Pinterest sets IPO price range at $15-$17



Is next in line for the anticipated IPO's. We don't have a date yet. They filed their S one a couple of weeks ago. Now, they've come out with their price range and they've set the range at fifteen to seventeen dollars a share on the face of it that seems reasonable super-conservative which. So let's talk about that. Because it's conservative to the point where the last time we saw numbers regarding what is Pinterest worth on the private markets. If they hit this range, they're going to be valued in the public markets at around, you know, up to nine billion dollars for the company that's lower than what we saw in the most recent valuation on the private market. It's a little bit lower than I believe is actually eleven billion and that this would value at the last round was at twelve billion. So you don't usually see companies coming out and telling their last round of investors who you're gonna take a little bit of a haircut here. This is not great. And honestly, it seems odd to me because this is a really great company. I had not thought a lot about Pinterest. I I am not you're not the target person for Pinterest. It's it's two thirds female, but eight and ten mothers in the US are on Pinterest. But they don't have a lot of debt. The only thing you could argue about Pinterest is they've been so. Conservative with spending capital that that does constrain the massive growth, but their advertising numbers have gone up sixty percent in the past year. And really like even just in the last quarter. They added forty one million monthly active users from a base of two fifty two to ninety one. That's stunning. Do you think on any level what we saw play out with the lift IPO factored into how Pinterest set their price range? I think when you're a company that's very careful with cash perception matters. So are they gonna cost themselves a little bit of money by pricing low? They are. But they also will put it out there at a place where they're more likely to get that I wave of stories about the IPO being a mild success. Instead of what you're having with lift when you would think lift went to. Instead of lift being down. You know, whatever it is ten percent. Couple of dollars in real world the stories on it. Make it feel like it's been a disastrous IPO and Uber should just not IPO. Well, when you think about as you said, how conservative Pinterest has been managing their money. Maybe this price range makes more sense. Particularly if the attitude they're taking is look, we know what our numbers are. We know what our strengths are. By the way, we know what our growth has been. And we see the projections in the digital advertising market. And look, they're not Gogel. They're not Facebook. And they're not Amazon as we talked recently on motley fool money about Amazon building up their digital ad business. But Pinterest has their niche. They're doing it. Well, and if they look at that growing digital ad market and say to themselves, we don't need to get the biggest lie supply. We just need to get our slice of the pie. They're going to. Fine and the ad market. As you said, it's growing, so they have a strategy to get more advertisers. They're under indexed on small businesses. And that's an area where Facebook does really well, so they can sort of organically take the audience they already have they actually have to be most protective of their community. They have a niche it's closer to linked in than it is to Facebook. So when you look and say, they're speaking women, they're speaking to people they have to make sure that their advertising doesn't overwhelm their content because it's great if you're on Pinterest, and you search for a recipe, and you get the recipe, you don't care if it's from your next door neighbor, or for someone who has a vested interest in selling you a particular brand of flour as long as it's a good recipe. So it's really about protecting the content experience, and they have a sort of unassailable audience. Facebook can't easily take this Twitter Amazon as long as they put the customer first, which we've seen is something Facebook did not do and. Right. And when we're let's be clear when we're talking about fl. Lower. There's only one choice king. Arthur that's just an I couldn't have named brand of flour. If we talked for an hour. Oh, yeah. No. It's it's just king. Arthur. In terms of is this something that you look at. And you think I wanna get in if not the opening day as close to the opening day or something that you say, I don't care how excited I am. By the story. I'm waiting three months to see how they do. So I hadn't given a lot of thought to Pinterest as a company before you brought up talking about on the show, and I'm actually super impressed. Like normally, I agree. I are about hype they're much more about you know, what happens to a stock. The day after earnings are reported and someone reads the first line of the earnings report in the stock goes down ten percent. But I look at the fundamentals of this company, and I can't disagree in. When you read the risk section, which you've read those they're always preposterous. It's like what if all of our executives are eaten by bears the internet could go away like, but the actual risks to their business are fairly minimal. And when you're this conservative

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