Recapping the day's news and newsmakers through the lens of CNBC.
Pinterest has raised a mammoth round of venture capital, $225 million, that values the company at $3.8 billion. All that money, without one dollar of revenue to speak of. Meanwhile, Amazon posted yet another profitless quarter, yet its revenue continues to outperform, and Wall Street continues to love it. In the past six months, Pinterest's valuation has risen by 50 percent; Amazon stock, a "paltry" 32 percent rise by comparison, including its after-hours eight percent spike today.
A long-term plan for domination is Amazon's key to keeping on the Street's good side while profits remains nil. And Pinterest, which is evolving into an e-commerce giant of sorts with its recently unveiled "promoted pins" and popularity among those "pinning" products they prefer, espoused its own grandiose philosophy in a statement on its recent fundraising—and it may not even need to establish a business model for a long-time if it can keep raising this much money.
"We hope to be a service that everyone uses to inspire their future, whether that's dinner tomorrow night, a vacation next summer, or a dream house some day."—Ben Silbermann, Pinterest co-founder and CEO