Pinterest shares pop 8% as activist Elliott Management takes $1 billion stake

The company said it plans to use the investment to buy back stock as part of a $3.5 billion share repurchase program approved by the board.

“Elliott’s investment is a strong vote of confidence in the work we have done to build our business and the significant opportunities ahead for Pinterest,” said CEO Bill Ready in a release.

Marc Steinberg, who is a partner at Elliott and a member of Pinterest’s Board, said the firm sees “substantial opportunity ahead” for the social media company. 

Last month, Pinterest slumped following a lackluster fourth-quarter earnings. At the time, the company said the tariff shocks weighed on large retailers and led to a pullback in advertising.

In January, the company also joined a wave of companies cutting jobs to prioritize artificial intelligence, and axed less than 15% of its workforce.

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