Valued $ 12.9 billion, Pinterest succeeds its IPO

The “lifestyle” application for sharing photos according to his interests managed to generate the enthusiasm of the markets. The value of its stock took nearly 30% compared to its introductory price of 19 dollars. Pinterest’s advertising model is appealing to investors.

Despite the 17% decline in two weeks of Lyft shares, the main competitor Uber launched on the stock market at the end of March, the markets still seem to keep the appetite for technology stocks. Introduced Thursday, April 18 on the New York Stock Exchange (NYSE) under the acronym “PINS”, the photo sharing app Pinterest closed its first day at 24.40 dollars a share, an increase of 28.4 % compared to its introductory price, set at $ 19. What value the Californian company to $ 12.9 billion, while it was estimated at about $ 12 billion before its IPO.

An advertising model based on “authentic marketing”
Launched in 2010, Pinterest is halfway between the social network and the search engine. The platform makes it possible to share and “pin” photos on a virtual wall, according to its centers of interest (decoration, food, fashion …). The ideal playground for advertisers who want to reach an urban and connected target. His credo: the “authentic marketing”, very fashionable at the moment, which aims to “inspire” the user, to “give ideas” … to push him to buy.

After building a solid community of 250 million users, the social network must now capitalize on the golden mountain on which it sits. In 2018, the startup recorded a turnover of 755.9 million dollars but a net loss of 68 million dollars. To monetize its audience, the young push has gradually activated two levers: advertising and online commerce. In 2014, Pinterest rolled out the first brand-sponsored pins, only in the United States. The platform then waited until July 2018 to launch this function in France, where the social network has about 15 million users. In 2015, he launched, still in the United States, the opportunity to buy directly on the platform on a selection of products. A function that Instagram, Facebook’s social sharing network, has just copied. And in 2017, Pinterest launched a tool that allows you to click individually on certain elements of a photo (objects, furniture, clothes, accessories …).

The platform thus positions itself as a “natural” intermediary between users and brands, which account for 75% of the content broadcast. Good news, the audience of Pinterest, although much lower than 1.2 billion users of Instagram and Facebook 2.3 billion, is a dream of advertising: female to more than 70%, urban and connected. Sufficient, for now, to give confidence to the markets.

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