Elliott

Market Moves: Tariffs, Tech, and Gen Z's Analog Trend

CNBC's Morning Squawk reports market and policy developments affecting investors: Treasury Secretary Scott Bessent said President Donald Trump's 15% global tariff will be implemented this week and that the U.S. will announce measures to support Gulf oil trade, after Trump pledged to insure and potentially escort tankers through the Strait of Hormuz. OpenAI CEO Sam Altman told staff the company will not control how the military uses its technology; OpenAI recently won a Defense Department contract while rival Anthropic was blacklisted. Blackstone allowed nearly 8% withdrawals from its BCRED private credit fund, and its shares fell. Commerce Secretary Howard Lutnick agreed to testify before the House Oversight Committee about his ties to Jeffrey Epstein. The newsletter also notes Gen Z’s increased spending on analog goods and a $1 billion Elliott investment in Pinterest.

Elliott Invests $1B in Pinterest, Eyes AI Growth Potential

Elliott Investment Management has taken a $1 billion stake in Pinterest, increasing its position after first investing in the company in 2022. Pinterest said the capital will fund a $1 billion accelerated repurchase of Class A shares and support a newly authorized $3.5 billion broader share buyback program. CEO Bill Ready framed the move as a vote of confidence in Pinterest’s AI initiatives, citing record 2025 revenue, growth in users, and more than 80 billion monthly searches. The company has faced recent headwinds — including a 15% workforce reduction, a weakened ad business and rising competition from AI chatbots — but its AI-powered visual search and recommendation tools are central to its turnaround strategy. Pinterest stock rose about 6% in premarket trading after the announcement. Elliott’s activist history suggests its involvement may lead to closer strategic and cost scrutiny.

Elliott's $1 Billion Boost Sends Pinterest Shares Soaring

Activist investor Elliott Investment Management bought a $1 billion stake in Pinterest, triggering a roughly 9% one-day jump in the social platform’s shares. Pinterest said it will use the capital to repurchase stock as part of a newly approved $3.5 billion buyback program. Elliott will purchase $1 billion of convertible senior notes with an initial conversion price of $22.72 per share, roughly a 30% premium to the prior close. Marc Steinberg, a partner at Elliott who will join Pinterest’s board, said the firm sees substantial opportunity ahead. The article notes Pinterest has faced slowing growth, a near one-third decline in its stock year-to-date, tariff-related advertising pullbacks among large retailers, and January cost cuts including <15% workforce reductions as it prioritizes AI.