Uber’s shares fell on a humiliating first day of trading in May and have closed above the $45 price of the initial public offering (IPO) on only two days since. The ride-hailing firm reported a $5.2bn loss for the three months to the end of June. Its biggest quarterly loss was weighed down by IPO expenses, but investors worry it might never make money.
Pinterest, the digital pin board company, made a spectacular debut on the New York stock exchange on Thursday when its shares leapt 25% in its first few hours of trading.
The company, which allows users to “pin” and share pictures of favorite recipes, decorating tips and inspiring images, is used by 250 million people a month and reaches “eight out of 10 moms” in the US, according to its regulatory filing.
Pinterest, the digital scrapbooking site, has became the latest Silicon Valley “unicorn” to publish details of its plans to go public. The company’s initial regulatory filing would value the company at around $9bn, significantly less than previous valuations but a figure that could change if investors get behind the initial public offering (IPO).
Pinterest is the second of a herd of unicorns – private companies valued at over $1bn – now stampeding to list on the US stock markets.
In Silicon Valley, an open house can be more than an open house. At a six-bedroom, seven-bath home in the town of Menlo Park, a flamenco dancer swirled and a guitarist fingerpicked in a kitchen alcove. Outside, pesto pizza was pulled from the pizza oven. A face painter splotched unicorns on pudgy cheeks. A barista whipped up lattes. There were squishy toys for kids and videos of the house for potential homebuyers, who could keep the video-players.
Several big-name tech companies are set to enter the public market, and the speculation over the effects of a crush of overnight millionaires overwhelming the region has reached fever pitch.