Why Pinterest Stock Popped Today
Shares of Pinterest (NYSE: PINS) climbed 11.6% on Tuesday after activist investor Elliott Management confirmed that it is now the social media company's largest investor.
Pinterest's growth has slowed in recent quarters, with people spending more time offline now that coronavirus-related precautions have eased. Pinterest's stock price, in turn, has shed nearly all of its pandemic-related gains. Even after today's performance, its shares are down more than 60% over the past year.
Yet Elliott's investment suggests the firm's analysts think the plunge is an overreaction -- and that Pinterest is poised for a rebound. "Pinterest is a highly strategic business with significant potential for growth," Elliott managing partner Jesse Cohn and senior portfolio manager Marc Steinberg said in a press release.
Source Fool.com
