Pinterest CEO Bill Reddy speaks at the 28th Milken Institute Global Conference at the Beverly Hilton on May 5, 2025 in Beverly Hills, California.
Patrick T. Fallon | AFP | Getty Images
pinterest The stock rose 6% after activist investor Elliott Investment Management invested $1 billion in the social media company.
The company said it plans to use the funds to buy back shares as part of its newly approved $3.5 billion share buyback program.
“Elliott’s investment is a strong vote of confidence in the work we’ve done to build our business and the great opportunities ahead for Pinterest,” CEO Bill Ready said in a release.
Mark Steinberg, a partner at Elliott and a member of Pinterest’s board of directors, said the company sees “a huge opportunity coming” for social media companies.
Pinterest stock has lost nearly a third of its value this year. The company has struggled with slower growth and reduced advertising spending as companies grapple with the impact of tariffs.
Last month, Pinterest shares fell after the company revealed lackluster fourth-quarter results and a tariff shock weighing on major retailers, leading to lower ad spending.
The company laid off less than 15% of its workforce in January and also cut back-office space to prioritize artificial intelligence.
As part of the transaction, Elliott will purchase $1 billion of convertible notes at an initial conversion price of $22.72 per share. This represents a 30% premium to Monday’s closing price.
Pinterest’s daily stock chart.
