Pinterest Inc PINS shares are trading higher by 19% to $20.90 during Thursday's after-hours session. The sharp rise comes following a WSJ report suggesting Elliott Management has been in discussions with the company.
What Happened?
Per the WSJ report, "Elliott Management has told the company that it is the biggest investor in Pinterest, having built a stake of more than 9% in recent months—partly in common stock, one of the people said.
The WSJ reports the activist has been in discussions with Pinterest over the past several weeks. The WSJ says it couldn’t be learned at the time of publication what the activist has been discussing with the company.
Why it Matters
Shares of companies in the broader communications, media and entertainment industry have been trading lower amid overall market weakness in 2022 as traders weigh recent CPI reports and Federal Reserve rate hike announcements. The sector has seen ongoing volatility due to inflation and monetary policy tightening, and a change in leadership may stand to improve Pinterest's business ambitions amid a decline in users and revenues.
According to data from Benzinga Pro, Pinterest has a 52-week high of $77.92 and a 52-week low of $16.14.
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