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%.
