Pinterest stock soared after The Wall Street Journal reported that activist investor Elliott Management has taken a stake in the company,
Elliott has built up a position of more than 9% of Pinterest stock recently, the Journal reported Thursday afternoon, and has begun talking to it about how to turn the stock around. It does need fixing: Pinterest shares have dropped 74% so far this year amid declines in users and executive departures.
Last month, co-founder Ben Silbermann stepped down as CEO of Pinterest and was replaced by Bill Ready, who had been a senior executive at Alphabet‘s
Google commerce and payments unit. Pinterest is trying to pivot its business more toward online shopping and international markets.
Pinterest shares are having a difficult year. Investors are growing more concerned over the prospects for the online ad market and e-commerce sales if the global economy slows down. Its shares are down about 50% this year as of Thursday’s close.
Elliott declined to comment. Pinterest did not immediately respond to a request for comment.
Though it is unclear what Elliott wants to do with Pinterest, the stock reacted in a big way to the news. Its shares were up 12.5% in premarket trading Friday.
Write to Ben Levisohn at [email protected]
Credit: www.marketwatch.com /