Pinterest Shares Plunge 18% After Weak Q1 Revenue Forecast Amid Tariff Pressures
Pinterest's Q1 revenue forecast of $951M-$971M fell short of Wall Street's $980.1M estimate, triggering an 18% after-hours stock drop. The company cited reduced advertising spending by tariff-impacted retailers as a key factor.
Despite missing revenue expectations, Pinterest reported 619 million global monthly active users—a record high that surpassed analyst estimates of 606 million. This growth comes amid intensifying competition from TikTok and Instagram, which boast larger user bases and more sophisticated AI advertising tools.
CFO Julia Donnelly confirmed industry-wide advertising pullbacks by major retailers facing margin pressures from new tariffs. The platform's struggle to monetize its growing user base raises questions about its competitive positioning in the evolving social media landscape.