Wall Street investors believe social media giant Pinterest could be one of the hottest IPOs in the near future. Analysts say Pinterest’s greatest advantage right now is that it can expertly monetize non-intrusive advertisements.
Pinterest allows its users to easily see items on various “pins” and connect to websites where they can purchase a wide variety of items. There are no ad intrusions to the overall social media experience on Pinterest.
Just looking at Pinterest’s figures, investors are mightily impressed. Pinterest has over 100 million users, $11 billion valuation, and grew an astonishing 500 percent in 2015.
Pinterest is unabashedly a female dominated platform. 80 percent of Pinterest’s users are women, and 20 percent of all women who use the Internet use Pinterest. This makes Pinterest a perfect place for companies in the fields of jewelry, technology, foodstuffs, design, and fashion.
One interesting feature investors are also interested in is a Pinterest grocery assistant program. This program, which is currently in development stages, will allow users to purchase various items for a “pinned” recipe and add it to their e-shopping cart. Investors see a great future for this program, perhaps even allowing users to do e-grocery shopping from the comfort of their home.
Many high-quality financial studies have been singing Pinterest’s praises as well. A recent study put out by eMarket said that Pinterest was better than SnapChat, LinkedIn, and Instagram in terms of “social advertising effectiveness.” Another study from Wedbush Securities said that Pinterest was on target to garner $500 million in ads by the end of 2016.
Paul Sciarra, Evan Sharp, and Ben Silbermann founded the social media company Pinterest in 2010. Pinterest is currently headquartered in San Francisco and is available in around 20 languages. Pinterest has yet to officially announce any plans for a future IPO.