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Yahoo Finance Live anchors discuss stock performance for Pinterest as Elliott Management takes a 9% stake in the company.
- There's interest in Pinterest-- wow-- at least at Elliott Management, the activist investor snapping up over 9% of the company, according to the "Wall Street Journal." Wow. Well, first, I should say Pinterest did not get back to me seeking comment on this one. Elliott declined to comment to me on this one as well. But Elliott is no stranger to investing or trying to push for change in social media companies. About two years ago, they pushed for lots of changes over at Twitter. They ultimately got a board seat. And the argument could be made that they pushed out Jack Dorsey as the CEO of Twitter.
But they ultimately I think won there and drove some value at Twitter. And this comes at an interesting time for Pinterest. That first quarter result was absolutely dreadful. Stock down significantly over the past year, I believe, over 70%. Global monthly active users in the first quarter down 9%. The new CEO just started two weeks ago. So he has a really interesting mission. One, to reignite growth. Probably bring commerce on this platform once and for all. And now, oh, guess what, fight off one of the toughest activist firms out there.
- A couple of differences between Pinterest and Twitter. First of all, Ben Silverman, who was the CEO, who just stepped down as CEO, he's executive chairman. And he still owns 37% of the company. So whatever Elliott reportedly owns at this point, he owns more. And so we'll see how that dynamic works in terms of him controlling more of the shares than Elliott at this point in time. Secondly, you do wonder when Elliott took this stake and if they already were a factor in Silverman stepping down from that particular role. So you would think that it would have leaked at the time of his stepping down. But nonetheless, watch this space, I guess. It'll be interesting to find out more about the behind the scenes moves.
- Real quick for me, if I've learned anything from covering Elliott and its campaigns, don't mess with them. It would be in the best interest of that entire Pinterest board to work with them and see what they want and see what they can do to help bring some value to this company because the stock has went straight down. And why is there on commerce on Pinterest? It should be. I mean, the platform has to be reinvented. And they have not got it done yet.