Pinterest shares soar after Elliott reveals it’s the largest contributor

The screens display the Pinterest Inc. logo. During the company’s initial public offering on the front of the New York Stock Exchange (NYSE) in New York, US, April 18, 2019. REUTERS / Brendan McDermid

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Activist investor Elliott Investment Management revealed on Monday that it has become the largest shareholder in Pinterest Inc (PINS.N), supporting the management of the digital billboard company and raising the company’s shares by 21%.

Jesse Cohen, Elliott’s managing partner and Mark Steinberg, senior portfolio manager, said in a statement that Pinterest has “significant potential for growth,” which has led to Elliott becoming its largest shareholder.

Elliott has not disclosed its stake in Pinterest. However, the Wall Street Journal reported in July that the investment firm had raised more than 9% of the stock. (

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The company on Monday backed Pinterest CEO Bill Reddy, who took office on June 29, and also praised co-founder Ben Silberman for the leadership transition.

On a post-earnings conference call, Ready said Elliott and the management of Pinterest had a “very collaborative and engaging dialogue.”

“As a visual search engine, Pinterest provides a unique way for businesses to market. I think Elliott may be on the cusp of something here,” said Michael Shulman, chief investment officer at Running Point Capital.

Elliott has also built up its stake in PayPal Holdings Inc (PYPL.O), as reported by Bloomberg News (, and has previously bought stakes in companies including eBay inc (EBAY.O) and Twitter Inc. (TWTR.N) and AT&T Inc (TN).

Shares of Pinterest soared at $24.36 after the bell on Monday, still far from the high of $89.90 in February 2021, when people crowded into their homes during the pandemic, inspiring the company for projects.

Elliott’s statement came as Pinterest reported lower-than-expected profit due to higher costs and less time on its platform.

Like its peers, Pinterest has suffered from advertisers cutting budgets in response to rising costs and recession fears.

The company has seen weakness from advertisers in the consumer packaged goods category, large retailers and mid-market advertisers, said Chief Financial Officer Todd Morgenfield, adding that the digital advertising environment will remain challenging.

The company said it expects revenue to grow at a mid-single-digit rate in the current quarter, weighed down by a stronger dollar.

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Additional reporting by Yuvraj Malik and Mahnaz Yasmin in Bengaluru; Edited by Magu Samuel

Our Standards: Thomson Reuters Trust Principles.

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