Pinterest: The Next Twitter or Facebook?

The hot-growth content-sharing site could be the new big thing

   

The social networking market has created an explosion of wealth. Zynga (NASDAQ:ZNGA) has a market value of $8.8 billion, and LinkedIn’s (NYSE:LNKD) is at $9 billion. What’s more, Twitter recently raised capital at a $8 billion value, and of course, Facebook’s shares (in secondary markets) are trading at a level that gives the company a valuation of about $100 billion.

Could there possibly be any room for new players? As it turns out, there is. One that’s getting a lot of attention is Pinterest, which essentially is a virtual scrapbook. You can collect photos, recipes and other content from across the Web — and then share it with friends. This is done with a “Pin it” button.

Consider that over the past six months, traffic has soared tenfold. In fact, Pinterest has about a third of Twitter’s visitor count.

So might there be yet another social network IPO in the works? It’s possible, but as seen with companies like Twitter, there’s probably no rush. According to the The Wall Street Journal, it looks like Pinterest has minimal revenues. Still, venture capitalists have put a $200 million valuation on the company.

Interestingly enough, Facebook founder and CEO Mark Zuckerberg also is a member on Pinterest and has been fairly active.

Maybe he’s doing research for an acquisition.

– Tom Taulli, InvestorPlace.com


Article printed from InvestorPlace Media, http://investorplace.com/2012/02/pinterest-the-next-twitter-or-facebook/.

©2014 InvestorPlace Media, LLC

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