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How to think about the Pinterest and Uber IPOs

Tim Mullaney
How to think about the Pinterest and Uber IPOs

Let’s talk about Pinterest (PINS) first, since shares of the San Francisco-based social network for crafts prices this week, in a deal expected to value the nine-year old company around $11.3 billion. Pinterest’s IPO should work because there’s such a clear comparable to what its business should look like over time — Facebook (FB) another social-media site that sells advertising. Pinterest may never be as big as Facebook’s $55.8 billion in 2018 revenue, but the efficiency of how Facebook turns revenue into profit can be close-to-duplicated.