Zoom Blows Past Pinterest in Dual Trading Debuts
It was the first day of trading for both social networking site Pinterest (PINS) and video conferencing startup Zoom (ZM), but when the dust settled at the end of the day, the smaller, less hyped Zoom made the biggest impression.
Zoom started strong immediately out of the gate. Originally priced at $36 a share, it opened at $65 a share and peaking at $66 during the day before closing at $62 a share. That’s a whopping 72% gain from its list price and the closing price on the first trading day.
Pinterest, meanwhile, started at 23.75 and ended the day at $24.42. It was originally priced at $19 a share, good for a 28% gain.
Why did a smaller, lesser known startup beat a company that’s more widely known and who’s IPO was more anticipated by analysts?
The difference is in profitability. Zoom is. Pinterest isn’t. At least not yet.
According to CNBC, Zoom grew its sales by 118% compared to Pinterest’s 60%. Plus, Zoom gained $7.6 million in net income. Pinterest lost $63 million.
”Zoom is that most unusual beast, which is a profitable IPO coming out of the tech sector,” said Roger McNamee of Elevation Partners, in an interview with CNBC this morning.
Besides both being startups going public on the same day, the two companies have one other thing in common. They both had their morning public launches obscured in the headlines by the breaking news on the Robert Muller report.