Pinterest (PINS.US) stock jumped over 15.0% on Friday after the WSJ reported that activist investor Elliot Management has taken a 9% stake in the image-sharing company, therefore becoming its biggest shareholder.
Company is going through a difficult period recently. Its stock plunged 75% amid dropping numbers of global monthly active users (MAU). In 2021 the company recorded a 6% decline of its MAU's to 431 million, and some analysts take it as a sign that the project's popularity is decreasing. Also a spate of executive departures is also worrying. Ben Silbermann stepped down as chief executive in June, and was replaced by Bill Ready, previously president of commerce at Alphabet Inc.'s Google.
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Open account Try demo Download mobile app Download mobile appOn the flip side, in the same period revenue jumped 52% to over $2.5 billion. It will be interesting to see whether Elliot Management involvement will improve the company's performance, similar to the case of Twitter from 2020.
Pinterest (PINS.US) stock launched today's session with a bullish price gap, however buyers struggle to break above local resistance at $20.70, which is marked with previous price reactions and downward trendline. Source: xStation5
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