Bill Ready, CEO, Pinterest, speaks at the 28th annual Milken Institute Global Conference at the Beverly Hilton in Beverly Hills, California on May 5, 2025.
Patrick T. Fallon | AFP | Getty Images
Pinterest stock jumped 8% after activist investor Elliott Investment Management made a $1 billion investment in the social media company.
The company said it plans to use the funding to buy back stock as part of a newly approved $3.5 billion share repurchase program.
"Elliott's investment is a strong vote of confidence in the work we have done to build our business and the significant opportunities ahead for Pinterest," said CEO Bill Ready in a release.
Marc Steinberg, who is a partner at Elliott and a member of Pinterest's Board, said the firm sees "substantial opportunity ahead" for the social media company.
Pinterest's stock has shed nearly a third of its value this year. The company is battling slowing growth and reduced advertising spending as businesses deal with the tariff fallout.
Last month, Pinterest's stock slumped after disclosing in its lackluster fourth-quarter earnings that tariff shocks have weighed on large retailers and contributed to a pullback in advertising spending.
In January, the company also axed less than 15% of its workforce and cut back office space as it prioritizes artificial intelligence.
As part of the deal, Elliott will purchase $1 billion in convertible senior notes at an initial conversion price of $22.72 per share. That represents a 30% premium to the stock's closing price on Monday.
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