Pinterest Inc's initial public offering set the online scrapbook company's valuation at 12.7 billion US dollars on Wednesday, above its expectations and a sign of strength for the tech IPO market after Lyft Inc's struggles.
Why does it matter? It has more than 250 million monthly users.
However, after the first IPO sale where Zoom shares were presented to investors, soaring to 70% in a day brought Zoom to the status of a tech company with the highest enterprise value through estimation of 49 times its annual revenue.
Zoom Video Communications - known simply as Zoom - showed the chronic cash burners of Silicon Valley start-ups how the market appreciates a combination of innovation and profitability as its stock price rocketed 72% on its IPO.
Thursday also saw a successful debut by US video conferencing firm Zoom Video Communications, which soared 80 percent above its IPO price of $36. Average trading volume in the past month has surged to almost 75,000 shares, or 24 times the average of 3,000 shares that were traded in 2018.
Given Lyft's (LYFT) IPO stumble, investors will be paying even closer attention to how Pinterest and Zoom performance post-IPO. The videoconferencing company is headquartered in San Jose, California.
Compare that to Thursday's debut of Zoom Video, whose market cap surpassed $16 billion, with more than 13 million shares traded in the first 30 minutes after it opened. The IPO price provided the company with a fully diluted market cap of $12.6 billion, a figure that is slightly larger than its Series H valuation of $12.3 billion.
Though Pinterest had a good day, some thought it might become an "undercorn," a company that debuts at a lower valuation than it held when private.
Pinterest's initial 15-17 US dollars per share target range had set it on course to be valued below its last private fundraising valuation of 12.3 billion USA dollars in 2017.
Zoom's offering was led by Morgan Stanley, JPMorgan Chase & Co., Goldman Sachs Group Inc. and Credit Suisse Group AG. Just three weeks ago, Lyft also did well on its first trading day before Wall Street pumped the brakes.
The extremely popular social media site Pinterest Inc.
Zoom is a fast-growing company with revenues more than doubling to about $330 million in fiscal 2019 (ending January 2019) from $150 million in fiscal 2018 and $60 million in fiscal 2017.
Pinterest had a net loss of $63 million on revenue of $756 million in 2018.