Pinterest stock up 12% on users, Elliott support

Shares of Pinterest (PINS) rose more than 12% Tuesday after its quarterly results and support from activist hedge fund Elliott Management to new CEO of the search and discovery platform Bill Ready.

“Pinterest occupies a unique position in the advertising and shopping ecosystem, and CEO Bill Reedy is the right leader to oversee the next phase of Pinterest’s growth,” read a statement from activist investor Elliot Management, the company’s largest shareholder, with a 9% stake.

He worked as Head of Commerce at Google before taking over as CEO of co-founder Ben Silberman who transitioned to CEO.

“Pinterest delivered 9% year-over-year revenue growth in the second quarter, or 10% revenue growth on a constant currency basis, despite the uncertainty facing our advertisers,” Reddy said in the company’s earnings statement.

“We accelerated our investment in shopping and e-commerce this quarter,” he continued.

PINS’ most recent quarterly revenue of $666 million missed Wall Street expectations of $666 million, while adjusted earnings of 11 cents came in missing the 14-cent consensus expected by analysts. The platform’s 433 million monthly active users (MAUs) fell 5% year over year, but still beat Wall Street expectations for the quarter.

The stock rose to 18% in the after-hours Monday immediately after the results were announced.

“What you see here at first is a relief rebound that SNAP (SNAP) actually lowered the bar as much as expectations … for social networking stocks,” Tom Forte, senior research analyst at DA Davidson told Yahoo Finance Live.

He added, “To the extent that there was a lot of fear or concern about Pinterest for the June quarter and September quarter. I think what you’re seeing here wasn’t as bad as it was feared.”

Social media app SNAP fell last month after it missed expectations, which were previously lowered in the quarter. The company, which relies on advertising revenue, warned investors that “the macroeconomic environment has deteriorated more and faster than expected.”

Enas is a market reporter covering stocks. Follow her on Twitter at Tweet embed

Click here for the latest trending stock indices for Yahoo Finance

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance

Download the Yahoo Finance app for apple or Android

Follow Yahoo Finance on TwitterAnd the FacebookAnd the InstagramAnd the FlipboardAnd the LinkedInAnd the Youtube

Leave a Reply

%d bloggers like this: