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But the forecasts given in the article most certainly could support that 9 billion valuation (i.e. 2.8 billion in revenue in 2018). Looking at the 90 million ru

by adevine 11y ago

But the forecasts given in the article most certainly could support that 9 billion valuation (i.e. 2.8 billion in revenue in 2018). Looking at the 90 million run rate is pretty meaningless given that Pinterest only relatively recently started advertising. I think there are plenty of completely absurd valuations in the tech scene right now, but if anything Pinterest has probably the easiest revenue story to tell.

eva1984 11y ago
Not really. Advertising as a way of monetization might be easy to understand, but harder to actually implement and sustain. It is not like 'just put ads on it', then money will flow by itself. It will take some non-trivial efforts for Pinterest to actually make their model working. The competition is out there: Facebook has one of the biggest and richest demographic data in the world, and it could easily leverage that to drive sales on Instagram, make it more appealing to advertisers, which I think Pinterest should be afraid of.