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Pinterest Raises $367M at $11B valuation

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Re: Pinterest Raises $367M at $11B valuation

#51
I love pinterest because the type of people on Hacker News are obviously not the target audience and so can't understand it.

Someone gets engaged. Almost every day between that day and their wedding will be on pinterest to get great ideas on every single item / food / clothing involved.

It's like amazon referrals on steroids

Re: Pinterest Raises $367M at $11B valuation

#52
A lot of people here dismiss Pinterest as just a "digital scrapbook" or "marketing tool". And while Pinterest is those things, it's also a new way of searching. And that's where the real value of Pinterest is. Their search technology has the potential to rival Google. I think that's worth a valuation of several billion dollars.

Re: Pinterest Raises $367M at $11B valuation

#53

You know when you hear about a lot of insane valuations and your jaw sort of drops in disbelief? I feel the opposite when I think about Pinterest. My immediate reaction here is "yeah, makes sense." I guess it must stem from my marketing agency days. I had SO MANY clients begging me to get them into Pinterest ads when they released. I also sit at home and see how much time my wife spends on the site and how dedicated…

Agreed 100%. There's so much purchasing intent on Pinterest. I think it could be a stronger platform than Facebook for advertising non-digital goods.

Every bride uses Pinterest (and now most wedding vendors and bloggers).

My mother-in-law uses it every day to plan all her home remodeling projects and she's 60-something.

Re: Pinterest Raises $367M at $11B valuation

#54

You know when you hear about a lot of insane valuations and your jaw sort of drops in disbelief? I feel the opposite when I think about Pinterest. My immediate reaction here is "yeah, makes sense." I guess it must stem from my marketing agency days. I had SO MANY clients begging me to get them into Pinterest ads when they released. I also sit at home and see how much time my wife spends on the site and how dedicated…

but what you've said could be an argument for why it's worth 111B. I wonder why it's so underpriced? 11/111 is only 9.9%... I wonder what makes them so cash-starved that they would firesale this round at nine cents on the dollar compared to what we've seen they're really worth? /s

seriously while I appreciate your comment, none of what you've said has anything to do with any financial numbers, even to within an order of magnitude. . . it's nice that this is your reaction but don't you think an analysis of... something should enter the equation at some point? there are 3.5 billion women in the world, so you're valuing every user past and present that you've described, at $3. Why not $10 and call it 35b in revenue for a nice 110B valuation at a fair multiple of earnings.

seriously shouldn't we be looking at...something here? these numbers are literally astronomical. (as in, getting up there with the number of stars in the galaxy.)

Re: Pinterest Raises $367M at $11B valuation

#56
post #33

Earlier quoted context omitted.

The pre-business model unicorn thing still confuses me. The kicker in your comment -- scratching the surface of profitability -- is what I find interesting. What if they start digging to find there's no depth behind this surface? http://www.wsj.com/articles/viewers-dont-add-up-to-profit-fo...

I'm not sure what your point is? 1) Youtube isn't profitable, but it's taking more and more "hours watched" out of the TV market. Google can keep it running at break even for as long as they want, and then adjust the ad prices up very, very slightly and start making profit based on the huge audience. 2) Video watching (usually) has very little commercial intent, especially in terms of some kind of "commercial value p…

If YouTube can increase ad prices without losing advertisers, why aren't they doing that now?

Re: Pinterest Raises $367M at $11B valuation

#57
post #23

Earlier quoted context omitted.

I think Pinterest is way more valuable than Dropbox. They have a great product, very large dedicated user base, and a very clear path to monetization.

Isn't Pinterest more like del.icio.us in the sense that if something better comes along they are screwed? I understand that Facebook is hard to replace because you need to get everyone to migrate. Does that apply to Pinterest?

That's always a possibility, but I think at this point it would be just as hard to dethrone Pinterest. A lot of the content on Pinterest is pinned from within the site itself. I dunno what the percentage is, but most people I see that use Pinterest are usually just browsing their feed which is made up of pins from the people they follow (and the topics they are interested in). You also have to consider the amount of time that people invest into creating their boards and organizing all of their content. My sister has somewhere close to 20,000 pins now organized into very specific boards. She also has hundreds of followers and follows a ton of people.

Re: Pinterest Raises $367M at $11B valuation

#58
post #23

Earlier quoted context omitted.

I think Pinterest is way more valuable than Dropbox. They have a great product, very large dedicated user base, and a very clear path to monetization.

Isn't Pinterest more like del.icio.us in the sense that if something better comes along they are screwed? I understand that Facebook is hard to replace because you need to get everyone to migrate. Does that apply to Pinterest?

Less of a network effect than Facebook, I would think, because most users of Pinterest are pure content consumers, rather than hybrid content producers/consumers.

That said, they have a very large library of existing content, a large number of producers who have devoted a fairly large amount of time to Pinterest, and also... a space in which it would be hard to distinguish yourself by pure feature competition. How do you make a website that is substantially better than Pinterest at showing pictures and letting people bookmark them? If you create incrementally better search/recommendation technology, I think it would be hard to communicate your tech advantage to the average user, particularly before you develop a deep content library.

Re: Pinterest Raises $367M at $11B valuation

#59
post #27

For anyone who thinks this is high: when my wife (and lots of other women in her social group) is in the market for clothes, or wedding ideas, or baby/nursery ideas, she goes to Pinterest first. That is huge potential for monetization from advertising and affiliate sales. Pinterest is where shopping starts for tons of young women (primarily) with money.

people are saying that 'huge potential' is why someone gives you a million-dollar valuation even though your app doesn't have a revenue stream.

we are talking about ten thousand times higher than that. still on 'potential'...

Re: Pinterest Raises $367M at $11B valuation

#60

Good. In the age when the planet is faced with overpopulation, climate change, pollution and a myriad of other issues, including the shadow of ww3, the investors bet on a photo-sharing startup. Down-voters rejoice, but I couldn't care less about pinterest and what it offers. Maybe I'm getting old or maybe being a parent gives me a different perspective, but 11B for nicely arranged list of photos is idiotic. I'm sure…

This point of view is incredibly myopic; what you're seeing is what innovation looks like to people who don't benefit directly from said innovation. Knowledge discovery is huge, and it becomes especially profitable when that knowledge is tied to existing products (e..g expensive jewelry, wedding dresses).
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