Pinterest set IPO terms below last private valuation. Anybody knows why?

You often hear that IPO's tend to be overpriced- particular from the sheer number of investors who want to get their hands on these big names.

In the past, IPOs used to start off slightly underpriced to create the initial uptrend. In recent days however, the need is no longer there.

With many online critiques questioning the tangibility of Pinterest's revenue model, and adding to Lyft's poor performance, it might indeed be wise to scale back on the overall valuation to prevent a repeat of Lyft's strong downward spiral of prices.

While recent private investors are slightly disadvantaged given it means they paid a premium for their equity value, it might represent a lesser of two evils seeing a general upward appreciation in overall stock price instead of a strong selloff that can spiral beyond control.