Pinterest: Shares Surge On News Active Investor Is Has Built A Stake
BlackBull Markets | Jul 19, 2022 06:53PM ET
Pinterest's (NYSE:PINS) shares closed up 16.2% on Friday on the New York Stock Exchange after the Jack Dorsey as CEO of Twitter (NYSE:TWTR), the company he co-founded.
Elliott has also pushed for the spinoff of certain assets from eBay (NASDAQ:EBAY), leading to the divestment of StubHub in 2019 and Classifieds in 2020.
The WSJ report, which cited people familiar with the matter, said Elliott has been in talks with Pinterest over the past several weeks, although the subject of their discussions could not be determined.
Kenneth Squire, chief investment strategist at shareholder activism research firm 13D Monitor, said Elliott’s investment “is a sign of confidence in Ready’s ability to pursue several opportunities to better monetize the company’s user base.”
Elliott Investment Management could push Pinterest to boost its ad revenue in global markets where they are getting 10 to 20 cents per month per user. The platform could also increase its revenue by bolstering its e-commerce service.
“Given their expertise and history, we would expect Elliott to look for a board seat here, like they did at eBay and Twitter,” Squire said.
Squire expects the shakeup of Pinterest to be amicable as Elliott has gained a lot of respect from shareholders and directors in the tech sector since it shook things up at Twitter and eBay.
Pinterest’s shares are down 44% year-to-date as of Friday, and down 71% from a year earlier.
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