Pinterest (PINS) Soars 9% on New $1-Billion Investment

We recently published The 10 Biggest Winners in a Bloody Market. Pinterest Inc. (NYSE:PINS) was one of the best performers on Tuesday.

Pinterest rallied for a second day on Tuesday, jumping 9.27 percent to finish at $19.10 apiece following news that an investment firm acquired a $1-billion stake in the company.

In a statement, Pinterest Inc. (NYSE:PINS) said that activist investor Elliott Investment Management LP invested the said amount in the company, proceeds of which will be used to buy back its Class A common shares, as part of its $3.5 billion share repurchase program.

In addition, Pinterest Inc. (NYSE:PINS) would also repurchase another $500 million in shares from cash on hand pursuant to a 10b5-1 trading plan, subject to terms and conditions of the plan, market conditions, and management discretion.

“We delivered record revenue in 2025, with users reaching all-time highs for ten consecutive quarters and more than 80 billion monthly searches on our platform, as we continue to deliver strong innovation in visual search using AI. We are excited to continue our partnership with Elliott for the next phase of Pinterest’s growth. 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 Pinterest Inc. (NYSE:PINS) CEO Bill Ready.

“Today’s repurchase announcement reflects our belief that our current share price undervalues the strength of our business and the significant long-term growth opportunity ahead.”

While we acknowledge the potential of PINS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. Follow Insider Monkey on Google News.