Pinterest stock10/5/2016 Update: In a move that the media is saying could be signaling Pinterest’s interest in an eventual IPO, the company named its first ever Chief Financial Officer. Todd Morganfeld is coming to Pinterest from Twitter and has also worked at Hewlett-Packard and Goldman Sachs Group. Pinterest is estimated to be valued around $11 billion dollars and it looks like 2017 – 2018 will be the earliest the company could go public. However, CEO Ben Silbermann said yesterday that the company still has no immediate IPO plans. 

It looks like one of the next high profile social media companies to have an IPO could be Pinterest. Investors who are thinking ahead are trying to figure out how to buy Pinterest shares at the IPO price and if they can’t do that, should they still buy the stock when the company opens for trading the first day? Lets take a look at what has been happening so far. 

Will Pinterest Be Next?

People want to buy Pinterest stock because the platform has soared in popularity and is totally different from Twitter and Facebook. That is a key: being different than the rest. Of course Pinterest needs to figure out how to make money, but that seems to be a minor stepping stone in the current world of Internet social media IPOs. Pinterest raised $225 million dollars in late 2013, another $200 million more in May 2014, and now another $367 million in March 2015. They have also said they are planning on raising another $210 million in the coming months. 

All this for a visual search engine company that just started thinking about making money by showing ads on their site in September 2013. That means they are busy trying to become a viable business and the question isn’t If they will go public but when it will happen.

How To Buy Pinterest Stock

Just like the IPO’s of Alibaba, Facebook, and Twitter it will be virtually impossible for any individual investors to get in on the ground floor of a Pinterest IPO. Only those who have the right connections or have some long standing relationship with a broker will be able to get shares before the public can.  That means for individual investors like you and I, buying the stock on the open market once the stock goes public will be the only option.

To do that you should plan in advance and sign up with a discount stock broker. TD Ameritrade is great for investors of any level and it is the broker I use for the portfolio on the front page of this website. With no minimum dollar requirements for opening an account, you can rest assured that your money is safe with them as TD has been in business for over 40 years. Additionally, TD Ameritrade rated #3 in the 2017 Barron’s rankings of online discount brokers. 

**Signing up to any online broker is free and shouldn’t take more than 30 minutes. Once you put all your information in, you will need to put money into the account you just opened so that you are ready to buy Pinterest stock once it goes public. Of course you can also buy and sell any other stock that is on the market through your new broker account.  

Don’t Buy Pinterest Stock Right Away

By the time the Pinterest IPO happens which would be sometime in 2016 or later, investors will have had ample time to see how Facebook and Twitter stock have fared. If they are both down, why would Pinterest be any different? Perhaps then it would be a sign to steer clear and not buy the stock. If you do decide to buy, be aware that buying any IPO the first day is risky and especially so for popular and highly publicized stocks like Pinterest might be.

As I right this, Facebook stock is near an all time high and Twitter stock is in big trouble, down from its IPO price. What you might learn from this is that waiting to buy might be the smart thing to do when it comes to IPO’s. Wait for the euphoria to settle down and see whether investors are still as excited about the stock in a week or a month as they were on opening day. Most of the time you can get in cheaper somewhere down the road than you can on that first day. 


  1. Matt says:

    Hi all,

    Great article Bruce. Just refining some details, it is possible to buy Pinterest stock and other tech unicorn stocks before the IPO for the individual investor because the investment bank I work at actually specializes in it. There are some conditions however. I have a survey if anyone is interested in tech unicorn stocks or more specifically Pinterest.

    But first, I want to ask you Bruce if you could allow me to post the survey here. And if not, just delete this comment or send me a message through my email.

    Best of day,

  2. Brent Wright says:

    I personally am going to by on opening bell of this IPO whenever it is. I feel as if Pinterest is far better than Facebook, twice or anything else that’s social media. They can ale money and people not even realize it. Example for closet hint. There’s a shirt you love, you click the button. Then you click purchase and order it. They can charge a percentage to the company,then have a bid war. Who so going to sell it? Nordstrom, Lord Taylor or someone else. They can sell time slots, clicks etc. say there’s a outdoor patio you like or a recipe, you can click buy them the local store will have the materials packaged together and delivered to you or you can pick them up. All for a percentage. For the patio set it could be like a menards, lowes etc. they can also sell analytics on closing trends and etc. way more ways to make money than oh here’s an ad bothering you while you’re trying to post some random comment or talk to your friends.

  3. terry says:

    I disagree about waiting to buy Pinterest stock after THE INITIAL stock offering. I have an ameritrade acct and I have a full service brokerage acct. I will be telling my broker to buy at the opening bell! I don’t know when it will happen, nor will I be googling it every day! I do pay a full service broker for just this reason. You can’t expect to get in on the ground floor at no cost. Pay the professioals who add value to your investment portfolio.

    • Bruce Alan says:

      Terry, your comment makes very little sense to me. You pay a full service broker just to inform you when a stock goes public? What is the ground floor you are talking about? Anyone can put in an order at the opening bell.

  4. Elizabeth says:

    Pinterest already has begun offering “related pins” and as a frequent user of the site/ app, they do not bother me one bit. This assures me that Pinterest’s targeted advertising would be much better than Twitter and Facebook. Pinterest’s click through rate is up there with Google, much higher than Facebook’s. The ability to follow shops directly is basically the only way I shop anymore… I don’t go to many shops websites directly looking to aimlessly spend money on things I don’t necessarily need but when an appealing product is mixed in my curated feed I become much more interested in something I wouldn’t have seen otherwise. This is the way to advertise! If I am on Facebook or Instagram, I am there for the sole purpose of viewing personal photos and can easily ignore the vague targeted advertisements. But on Pinterest I am there seeking inspiration, aka spending money.

    I would actually be interested in buying stock right away if I saw that many people were excited about it, driving the price up, but this does not necessarily mean I would hold for an extended amount of time.

  5. Rachel says:

    I agree waiting out the initial frenzy, if and when the company decides goes public, is a good decision. Here’s my thought: Pinterest is a haven from advertising which is probably why it’s so popular. Once ads start popping up it will most likely annoy users and many will simply use it less or stop all together. Of course one could ride the wave on the short term and sell off early. I certainly would classify Pinterest as a “long haul” investment but really, is anything “long haul” anymore?

  6. Sharyn says:

    Great advice, thanks. I”m not an investor at all but an artist and really believe or have strong intuition about Pinterest. I would like to invest when they go public so is there a place I can go to or get an alert as to when the actually do go public.


    • Bruce Alan says:

      Sharyn, I think the best thing to do is to periodically Google “Pinterest IPO” and read what comes up in the results. If you do that today you will see that everything talks about future IPO’s and Pinterest going public sometime in the future. When a date is finally announced (whenever that is) you should see more articles that talk about that date and give you more specifics. Of course reading the tech-business news on a regular basis would also alert you as I’m sure that IPO will get a fair amount of publicity. Thanks for reading.

    • Matt says:

      Hi Sharyn,

      Anyone can set up Google Alerts now so that anyone can get a notification about a topic they are interested in. In this case, “Pinterest IPO” would be enough like Bruce said. Just letting you know if you haven’t already.

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