NEW YORK | Investors are giving unicorn technology companies Zoom and Pinterest a rousing reception in their debuts on the stock market.
Zoom Video Communications, which makes video conferencing technology, soared 81% when it opened for trading after pricing its initial public offering at $36. Pinterest, which lets users share images of crafts and other projects, jumped 25% after pricing its IPO at $19.
The high-flying market debuts come less than a month after ride-hailing service Lyft began trading. In what might be a cautionary tale for other anticipated tech IPOs, Lyft shares surged but have since plunged back below their original offering price.
Other high-profile companies such as Twitter and Snap had strong initial trading days but then saw their stock prices fall substantially in the subsequent months. Then again, there are companies like payment processor Square, which public at $9 per share, rose 45% on the first day of trading and now sell for around $70.
San Francisco-based Pinterest is on track to raise more than $1.4 billion on its first day of trading. The company has more than 250 million monthly users. Revenue, mainly through advertising, reached $736 million last year and the company posted a loss of $63 million.
Zoom, also based in San Francisco, is poised to raise more than $456 million through the sale of shares and a private placement. The company had $330 million in revenue last year and profit of $7.6 million, making it one of the few profitable technology companies going public this year.