Social media platform Pinterest and videoconferencing firm Zoom shares soared in their first minutes of trading on Thursday, marking solid early debuts for the two latest tech initial public offerings (IPOs) companies to go public.
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Both technology unicorns saw strong demand for their shares. Zoom, which priced at $36 per share, opened more than 70 percent higher with debut trading at $65 on the Nasdaq. Pinterest opened on the New York Stock exchange at $23.75, up approximately 25 percent from its offer price of $19.
Pinterest and Zoom began public trading after another high-profile IPO. Ride-sharing company Lyft saw its shares soar above its initial price in its first days of trading, only to drop more than 20% below its starting price as investors raised concerns about whether the company can be profitable. Other tech leaders, including Uber, are set to go public later this year.
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FOX Business breaks down key details regarding the Pinterest and Zoom IPOs below.
Zoom raised its IPO price range
The videoconferencing company raised its proposed price range to $33 to $35 this week, up from a previous range of $28 to $32. Zoom shares quickly surged past that initial level.
Zoom is profitable
A rarity among tech unicorns, Zoom turned a profit ahead of Thursday's IPO. The company reported revenue of $330.5 million in its most recent fiscal year, up 118 percent, year-over-year.
Pinterest’s massive user base
The platform, which allows consumers to “pin” interests in categories such as dinner recipes and fashion, had more than 250 million monthly active users as of December 2018 and more than $750 million in revenue in fiscal 2018. However, the company still operated at a net loss of $63 million over the same period.
Pinterest set its price range at $15 to $17 per share earlier this month, which would have placed the company's valuation at roughly $10.5 billion. That is well below the $12 billion valuation Pinterest received in 2017, the Wall Street Journal reported. However, Pinterest ultimately priced at $19 and saw shares rise in early action.
More tech IPOs on the way
Uber is set to go public later this year at a valuation of roughly $100 billion, though the company has yet to set an exact date. Workplace-messaging platform Slack is also expected to go public later this year via direct listing.