Pinterest IPO valuation expected at $9+ billion
Image-sharing social network, Pinterest, plans to make a stock exchange debut this spring and expects a valuation of up to $9 billion.
According to analysts, this valuation is a discount from the company’s most recent valuation on the private markets, although it keeps Pinterest in the same range as some of the other major tech companies with plans for an IPO in 2019.
In a regulatory filing earlier this week, the company disclosed its plan to sell 75 million shares at $15 to $17 per share. It expects to raise $1.3 billion in net proceeds and a valuation of just under $9 billion based on an outstanding share count of 529 million shares at the time of the offering. Even though Pinterest would be valued as high as $11.3 billion if stock options are included, that is not how it would be valued at its public offering.
Among high tech IPOs, ride-hailing platform Lyft (LYFT) was the first one to go public raising $2.3 billion in its offering, but was soon followed by a rough patch in terms of trading.
In its last fundraising round in 2017, Pinterest was valued at $12 billion and was nearing $1 billion in ad revenue.
In its 2018 IPO prospectus, the company reported $756 million in revenue that accounted for a 60% y-o-y growth. However, the company still posted a net loss of $63 million.
Other companies set to debut at the stock exchange this year are Uber, Slack, and Postmates.
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Notable companies
The most notable companies in this group are Microsoft Corp (NASDAQ:MSFT), Oracle Corp (NYSE:ORCL), Salesforce (NYSE:CRM), Adobe (NASDAQ:ADBE), Intuit (NASDAQ:INTU), Uber Technologies (NYSE:UBER), SERVICENOW (NYSE:NOW), Shopify (NYSE:SHOP), Palo Alto Networks (NASDAQ:PANW), CrowdStrike Holdings (NASDAQ:CRWD).
Industry description
Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.
Market Cap
The average market capitalization across the Packaged Software Industry is 10.66B. The market cap for tickers in the group ranges from 291 to 3.15T. MSFT holds the highest valuation in this group at 3.15T. The lowest valued company is BLGI at 291.
High and low price notable news
The average weekly price growth across all stocks in the Packaged Software Industry was 2%. For the same Industry, the average monthly price growth was 4%, and the average quarterly price growth was 4%. CMAX experienced the highest price growth at 220%, while NXTT experienced the biggest fall at -64%.
Volume
The average weekly volume growth across all stocks in the Packaged Software Industry was -6%. For the same stocks of the Industry, the average monthly volume growth was 10% and the average quarterly volume growth was 20%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 52
P/E Growth Rating: 74
Price Growth Rating: 58
SMR Rating: 82
Profit Risk Rating: 89
Seasonality Score: 0 (-100 ... +100)