Pinterest Inc (NYSE: PINS) is up nearly 20% on Friday after the Wall Street Journal said Elliott Management has built a sizable stake in the image sharing and social media company.
Elliott becomes the biggest Pinterest shareholders
The activist investor now has a more than 9.0% stake in Pinterest – a notable beneficiary of the pandemic that’s been struggling with a sharp decline in the number of users, now that the COVID restrictions have been removed.
Elliott Management is now its biggest stakeholder. The activist investor has a history of investing in tech companies and forcing changes that particularly relate to sales and management change.
Pinterest stock is down over 45% versus the start of 2022. Despite challenges, the $12 billion compared, in late April, reported results for its fiscal first quarter that topped Wall Street expectations.
Wall Street sees another 20% upside in Pinterest stock
The announcement comes a month after Bill Ready replaced Ben Silbermann as the CEO of the NYSE-listed firm.
Being also the co-founder and executive chairman of Pinterest, however, Silbermann retains about a 37% voting stake that somewhat limits the changes that Elliott can force at the California-based company.
Pinterest is yet to make an official comment on the stock market news. Wall Street currently rates “PINS” at hold and sees upside to $24.52 a share on average that translates to another 20% upside from here.
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