Pinterest Shares Plunge 18% on Weak Revenue Forecast

Pinterest shares tumbled 18% on Wednesday, wiping out billions in market value as investors reacted to the company’s cautious revenue forecast. The image-sharing platform faces mounting challenges in finding new growth avenues, amid stiff competition and tariff-related pressures.

Revenue Outlook Misses Expectations

Pinterest forecasted quarterly revenue between $1.31 billion and $1.34 billion, slightly below analysts’ estimates. The news triggered a premarket sell-off that could erase about $4.36 billion from the company’s market capitalization if losses hold.

Competitive Pressures and Ad Spending Slowdown

While other digital advertising giants, including Alphabet, Meta, and Reddit, reported robust third-quarter growth fueled by strong ad spending, Pinterest is grappling with slower momentum. Platforms like Instagram, Facebook, and TikTok continue to attract major retailers, offering larger user bases and integrated AI tools that appeal to global advertisers.

The slowdown is especially evident in Pinterest’s most lucrative markets, the United States and Canada. CFO Julia Donnelly noted that larger U.S. retailers are navigating margin pressures caused by tariffs, resulting in softer advertising budgets. International players, including China-based Temu and Shein, have also reduced marketing spend amid trade uncertainties.

Despite gains of 13.6% so far this year, outpacing Meta’s 7.2% growth, Pinterest struggles to identify clear catalysts for accelerating growth. Analysts point out that in a market where innovation and upward revisions drive stock momentum, the platform’s current trajectory may not inspire confidence.