Pinterest shares are the largest shareholder after Elliott disclosed

Pinterest shares are the largest shareholder after Elliott disclosed

Screens display the company logo for Pinterest Inc. during the company’s IPO in front of the New York Stock Exchange (NYSE) on April 18, 2019, in New York, United States. REUTERS/Brendan McDermid

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Aug 1 (Reuters) – Activist investor Elliott Investment Management disclosed on Monday that it has become the largest shareholder in Pinterest Inc ( PINS.N ), backing the digital pin-board firm’s management and increasing the company’s stake by 21% in extended trading.

“Pinterest is a highly strategic business with significant growth potential, and our strong belief in the value-creation opportunity in Pinterest has made us the largest investor in our company today,” Elliott managing partner Jesse Cohn and senior portfolio manager Mark Steinberg said in a statement.

Elliott did not disclose its stake in Pinterest and did not immediately respond to a Reuters request for comment.

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The Wall Street Journal reported in July that Elliott had amassed more than 9% of the shares. (https://reut.rs/3zp1smr)

Elliott endorsed new chief executive Bill Reddy, who takes over on June 29, saying he is “the right leader to oversee Pinterest’s next phase of growth” and also praised co-founder Ben Silberman for the leadership transition.

The revelation came as Pinterest reported a better-than-expected profit due to higher spending and users spending less time on the digital pin-board platform.

Excluding items, Pinterest earned 11 cents per share, compared with analysts’ estimates of 18 cents, according to IBES data from Refinitive.

Revenue, which rose 9% to $665.9 million, also came in short of estimates of $667 million, as the digital advertising market suffered a slowdown.

Like its peers, Pinterest has been hit by rising costs and advertisers cutting budgets in response to fears of a recession. Growth has also slowed compared to last year, when people flock to Pinterest for inspiration for projects like stay-at-home, wedding planning, home renovations and recipes.

A strong dollar is another concern. Pinterest said it expects mid-single-digit percentage revenue growth in the current quarter, “which takes into account slightly higher foreign exchange headwinds than in the second quarter of 2022.”

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Reporting from Yuvraj Malik in Bengaluru; Edited by Maju Samuel

Our standards: Thomson Reuters Trust Policy.

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