Pinterest’s stock fell 18% on Wednesday after the company issued a disappointing revenue forecast and warned of weaker ad spending in North America. The slump, which could erase over $4 billion in market value, reflects investor anxiety about rising competition from Meta, TikTok, and Alphabet’s ad platforms — all of which posted stronger-than-expected results this quarter.
Chief Financial Officer Julia Donnelly said U.S. and Canadian retailers are cutting marketing budgets due to tariff-driven margin pressures, while Chinese e-commerce firms such as Temu and Shein have scaled back ad spending amid uncertainty over the removal of the “de minimis” import exemption.
Pinterest expects revenue between $1.31 billion and $1.34 billion for the quarter, with the midpoint below Wall Street’s average forecast of $1.34 billion, according to LSEG data. Analysts at Morgan Stanley said Pinterest “failed to deliver” on innovation and upward earnings revisions, while Piper Sandler noted the lack of a “clear growth catalyst.”
The company’s results stand in contrast to ad market leaders Meta, Alphabet, and Reddit, which have leveraged AI tools and larger user bases to capture growing advertising budgets. Still, Pinterest shares remain up 13.6% year-to-date, outperforming Meta’s 7.2% gain.
