That’s a lack of perspective playing tricks on you. You see, Pinterest heavily lowballed it’s IPO, setting initial pricing far below its previously held valuation.
Why this was done? Your guess is as good as mine. :)
Why this was done? Your guess is as good as mine. :)
What I can tell you concretely though was that Pinterest made the willful decision to lower its initial pricing of its IPO to below its valuation (75 million shares priced between $15-17 for a total valuation of ~$11 billion compared to its original supposed pre-IPO valuation of ~$12 billion). This shows a clear lack of confidence in the company. This is a fact, not an opinion.
75 million shares priced between $15-17 for a total valuation of ~$11 billion compared to its original supposed pre-IPO valuation of ~$12 billion
A company that 'low balled' it's IPO simply made a huge mistake and left a ton of money on the table.
IPO pricing is very difficult because it's hard to predict demand and market conditions.
Ideally, you want a flat, and steadily increasing price.