Why Pinterest Stock Popped 18% in August

Shares of Pinterest (NYSE: PINS) were up 18.3% in August, according to data provided by S&P Global Market Intelligence. The company reported financial results early in the month that were better than Wall Street expected. It also has a new largest shareholder, which turned heads. And finally, the company has an under-the-radar project in the works that got some positive press late in the month.

Pinterest released financial results for the second quarter of 2022 on Aug. 1. Companies that generate revenue from advertising -- like Pinterest -- are generally having a hard time in 2022. Therefore, expectations were low. But Pinterest surprised investors by reporting a 9% year-over-year increase in revenue, supported by 17% growth in average revenue per user.

The analyst community predominantly responded positively to Pinterest's Q2 results, with many modestly raising their price targets for the stock. But one investing professional outshone the rest. On Aug. 1, activist investor Elliot Management confirmed a July report that it was Pinterest's largest shareholder.

Source Fool.com