This article first appeared on GuruFocus.
Pinterest (NYSE:PINS) shares fell more than 9% Wednesday after Chief Executive Bill Ready pointed to mounting challenges in international markets, adding to concerns about the company’s growth outlook.
Ready said at the Goldman Sachs Communacopia + Technology Conference that regulatory changes in Europe are creating difficulties for cross-border merchants from Asia. Pinterest is also changing its global go-to-market strategy, a process he expects could create pressure on the business in the near term.
Investor sentiment has also been affected by the late-August departure of Chief Financial Officer Julia Brau Donnelly. Pinterest’s third-quarter outlook calls for revenue growth of 13% to 15%, compared with 18.2% in the second quarter.
The company is continuing to invest in artificial intelligence tools, including Performance+, while competing with Meta and Google in digital advertising and visual discovery. Pinterest has more than 600 million monthly users and has entered a $4 billion agreement with Amazon Web Services to support its AI and computer-vision capabilities.
