Pinterest Shares Dive 18% as Advertising Pressures and Tariffs Hit Growth

Shares of Pinterest, Inc. tumbled by roughly 18 percent today, wiping out billions in market value after the company issued a cautious revenue forecast and flagged headwinds in its advertising business. The image-sharing platform now expects quarterly revenue of between $1.31 billion and $1.34 billion, a midpoint slightly below analysts’ expectations.

Pinterest’s results stand in sharp contrast to stronger performances seen from larger rivals, including Meta Platforms, Inc. and Alphabet Inc., which continue to benefit from robust ad spend and advanced AI-driven tools. Pinterest’s CFO cited two key challenges: a slowdown in advertising from U.S. and Canadian retailers navigating tariff-related margin pressure, and intensified competition from major platforms with broader reach and deeper AI-tools.

The company also pointed to a drop in ad spending from Asian e-commerce firms affected by the removal of import exemptions, which has led some advertisers to scale back marketing. While Pinterest reported user growth with global monthly active users reaching a new high of 600 million, monetising that growth remains a challenge.

Analysis / Impact:
Pinterest’s slump highlights how smaller digital-ad platforms may be more vulnerable when macro issues and industry competition combine. Compared to larger players, Pinterest has less scale and fewer escape routes when big advertisers pull back.

Tariff-driven pressures and reduced ad budgets from large retailers emphasise how global trade policy can ripple into digital-advertising revenue streams. For advertisers, margin pressure means less spend overall — and platforms like Pinterest feel it sooner.

For investors, the key question now is whether Pinterest can turn its strong user numbers into stronger ad-monetisation and fend off rivals with larger scale and more sophisticated AI capabilities. If it cannot, the valuation risk becomes elevated.