Elliott invests $1 billion, Pinterest's stock soars 10% and announces buyback plan

2026-03-03 17:18:03

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Investing.com - Pinterest Inc. (NYSE:PINS) stock rose 10% on Tuesday after the company announced a $1 billion strategic investment from Elliott Investment Management and plans to buy back $2 billion worth of shares in the near future.

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The social media platform stated it will use the funds from Elliott’s investment to support a $1 billion accelerated share repurchase agreement. Pinterest’s board approved a new $3.5 billion share repurchase plan to replace the existing one.

In addition to the accelerated buyback, Pinterest also plans to repurchase up to $500 million worth of shares through a 10b5-1 trading plan using available cash. Combined with the $473 million repurchased earlier this year under the previous plan, the company expects to buy back approximately $2 billion worth of shares by the first half of 2026.

Under the investment terms, Elliott will purchase $1 billion of convertible preferred notes due March 1, 2031. These notes have an annual interest rate of 1.75% and an initial conversion price of about $22.72 per share, a 30% premium over the March 2, 2026 closing price.

Pinterest CEO Bill Ready said, “The announced buyback plan today reflects our belief that the current stock price undervalues our business strength and the significant long-term growth opportunities ahead.”

The company reported record revenue in 2025, with user numbers reaching a new high for ten consecutive quarters, and its platform’s monthly searches exceeding 80 billion.

Marc Steinberg, a partner at Elliott and a member of Pinterest’s board, stated that Elliott has been a supporter of Pinterest since its initial investment in 2022.

On March 5, 2026, Pinterest will pay $1 billion under the accelerated share repurchase agreement and is expected to deliver approximately 80% of the total repurchased shares in the first delivery. These transactions are expected to be completed no later than the second quarter of 2026.

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