Pinterest (PINS) shares soared more than 12% on Tuesday following its quarterly results and support from activist hedge fund Elliott Management for the search-and-discovery platform's new CEO Bill Ready.
“Pinterest occupies a unique position in the advertising and shopping ecosystems, and CEO Bill Ready is the right leader to oversee Pinterest’s next phase of growth," read a statement by activist investor Elliott Management, the company's largest shareholder, with a 9% stake.
Ready served as Google's head of commerce prior to taking over co-founder Ben Silbermann's CEO position who moved over to the role of executive chairman.
“Pinterest achieved 9% revenue growth year over year in Q2, or 10% revenue growth on a constant currency basis, despite the uncertainty facing our advertisers,” said Ready in the company's earnings release.
"We accelerated our investment in shopping and ecommerce this quarter," he continued.
PINS latest quarterly revenue of $666 million met wall street expectations of $666 million while adjusted earnings of 11 cents came in shy of the consensus of 14 cents expected by analysts. The platform's Monthly Active Users (MAUs) of 433 million was down 5% year-over-year, but still exceeded Wall Street expectations for the quarter.
The stock surged as high as 18% in after-hours on Monday immediately after the results were announced.
"What you're seeing here initially is a relief rally to the extent that SNAP (SNAP) really lowered the bar as far as expectations ... for social networking stocks," Tom Forte, D.A Davidson senior research analyst told Yahoo Finance Live.
"To the extent that there was very significant fear or concern about Pinterest for the June quarter and the September quarter. I think what you're seeing here that it wasn't as bad as feared," he added.
Social media app SNAP tanked last month after missing expectations, which had been lowered previously in the quarter. The company, which relies on advertising revenue, warned investors the “macroeconomic environment deteriorated further and faster than anticipated."
Ines is a markets reporter covering equities. Follow her on Twitter at @ines_ferre
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