Pinterest (NYSE: PINS) shares fell approximately 21% intra-day on Friday after at least seven brokerages downgraded the stock, citing slowing advertising growth, intensifying competition, and a weaker-than-expected revenue outlook linked to tariff-related pressure on retail advertisers.
Investor sentiment turned negative after the company forecast first-quarter revenue below expectations, reflecting softer ad spending from retail clients.
Pinterest projected first-quarter revenue between $951 million and $971 million, below the average analyst estimate of $980.1 million. The outlook contrasted with stronger recent performance reported by competitors such as Snap and Reddit.
Analysts at Evercore downgraded the stock, pointing to a sustained deceleration in revenue growth and mounting competitive pressure from Google, Meta, Reddit, and other platforms. They also highlighted potential risks from a possible return of TikTok in the U.S. market and emerging advertising tools from OpenAI.
Bank of America also lowered its rating, noting that Pinterest’s growth gap relative to the broader sector appears to be widening. The firm cited tariff-driven softness among retail advertisers and increased competition from AI-powered advertising tools at larger platforms, which could limit Pinterest’s ability to win incremental budgets. It further suggested that the company’s margin expansion phase may have peaked, constraining profit growth.
