Pinterest Is Shooting Itself in the Foot With Its CEO Change

·4 min read

Shares of image-based social media company Pinterest (NYSE: PINS) have fallen more than 75% in the past year, as slowing user signups, a reversal of the trends that accelerated its growth early in the COVID-19 pandemic, and worries about the impact of an economic recession on advertising revenue combined to hurt confidence in the stock. The situation finally reached a head late Tuesday, and Pinterest took the aggressive move of bringing in outside help to take over the role of CEO from founder Ben Silbermann. Pinterest's stock moved up by 4% in premarket trading on Wednesday, so it's clear that many of those who trade the stock agree with the positive view of the leadership change presented in the company's press release.