The IPO Class of 2019: Zooms Value Races Past Lyft and Hangs Pinterest Up

Surging shares of Zoom Video Communications since its debut last month have made it more valuable than Lyft and Pinterest.

The conferencing technology company has gained 120% since it sold shares at a valuation of $9.2 billion on April 17, making it the best performing initial public offering of the year to raise at least $300 million, according to Bloomberg data. Zoom’s $20.6 billion market capitalization now exceeds Lyft at $17.9 billion and Pinterest at $15.3 billion.

Of the three companies, Zoom is the only one that turns a profit. The San Jose, Calif.-based company had adjusted net income of $5.7 million in the fourth quarter on revenue of $105.8 million. After closing lower just once in the 11 days since the IPO, the stock is trading 33% above the average analyst target price.

By contrast, (lyft)Lyft, which sold shares at a $20.6 billion valuation last month, has struggled to rise above its debut price and has seen its shares fall 13%. The ride-hailing company may face additional pressures next week when larger rival Uber Technologies is expected to price its own offering. (pinterest)Pinterest, the social-networking company, debuted on the same day as Zoom and has gained 49%.


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