After pricing last night, Zoom and Pinterest are doing well on public markets.1
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As a result of Lyft's strong pricing policy, but weak post-IPO performance, there was doubt about the performance of the two newly created unicorns. It turns out that the answer is pretty good.
As we discussed this morning, Zoom and Pinterest are different companies with different target audiences and growth trajectories. However, they both seem strong in terms of first day results. At the time of writing this article, here's where they are:
- At the price of $ 36
- Open at $ 65
- Currently trading at $ 63.85, up about 77%.
- At a price of $ 19
- Open $ 23.75
- Currently trading at $ 24.73, up about 31%
We will update this article at the end of the day with the final figures of the initial performance of the two companies.
Very briefly, some spinoffs from the strong results of both companies. In the honor of time, I will give a single paragraph on each: First, Pinterest cleans the negativity. Second, the extremely high income multiple of Zoom. Third, the implication of the request.
The valuation of Pinterest ($ 10.1 billion, or more than $ 12 billion on a fully diluted basis) and the slight decrease in this figure compared to the final private price of the unicorn (compared to the valuation figure undiluted of the IPO) are now irrelevant. The famous social enterprise collected a lot of new funds and public markets quickly pushed its new price higher than its former value. Pinterest is richer than it has ever been and is worth more than it has ever been (provided I do the calculations properly). This rejects the argument that the positive culture of society was too polite to succeed.
Zoom is now worth so much for every dollar of income that I do not really understand what people expect. The company's $ 9.2 billion IPO valuation allowed it to grow its business by 27.2x. We do not know precisely the new valuation of Zoom (financial websites will take time to deflate), but given the rise in its shares, we can assume that the new business turnover of the company is north of 45x. Investors bet that Zoom can continue to grow at 100% or more for a very long time.
Finally, the demand for both IPOs seems good, both in terms of IPO process and early in the session. For other unicorns who argue in public, the results must be annoying. And that bodes well for more offers this year.
Illustration: Li-Anne Dias.