Pinterest Releases its Figures for 2019



Pinterest has been doing well since it went public a few weeks ago. However, the company stumbled a little on Thursday falling into the list of newly publicly tech companies that are struggling shortly after been publicly listed. The Thursday earning report was the first since the company went public a few weeks ago. The company indicated that it had made losses but was in a better position compared to the previous year’s earnings. In fact the company recorded a 54 percent improvement from the previous year. The new report saw the company’s stock fall by over 15 percent as the report meant that the Wall Street investors’ expectations were not met. Pinterest is not the first tech company to experience a difficult stock market debut as other companies such as Uber have experienced the woes during their first day. For instance Uber shares dropped on the first day of trading and this has been the trend as its shares have dropped tremendously. Another tech company that has experienced the same woes is Lyft with the company’s shares dropping gradually since it was listed earlier in March. This latest trend is an indication that investors are not interested in investing in fast growing companies that are not profitable.

Investors now want smaller technology companies whose shares are not dropping rapidly like Uber and Lyft. This includes the likes of Zoom, PagerDuty as well as Beyond Meat. Beyond Meat deals with meat while PagerDuty has been specializing in cloud computing. Zoom on the other hand specializes in video conferencing software. This means that other companies getting ready to go public should distinguish themselves from these companies. Such companies include Slack, Wework as well as Postmates. All these are technology companies meaning that they should learn from Pinterest and Uber. WeWork is a real estate company while Postmates deals in food delivery. Slack on the other hand specializes in workplace collaboration. Pinterest unlike other tech companies went public at a time when the company was almost experiencing a breakthrough. The company has been specializing with adverts and this is their main way of making money. Its shares sold for 19 dollars per share and they have grown by over 60 percent. Pinterest revenue has risen to $202 million dollars from 131 million dollars in a period of one year. During the report the company also announced that it had around 291 million people who use its services every month.


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