Pinterest shares slide after its downbeat forecast turns Wall Street bearish

Investing.com — Shares of Pinterest fell about 22% in premarket trading on Friday. At least analysts from seven brokerages downgraded the stock on slowing advertising growth, rising competition and a weak revenue outlook, which the company said was due to tariff pressure on retailers.

Wall Street stance turned bearish on the image sharing platform after the Pinterest forecast first-quarter revenue below expectations, as the ad spending from retail clients has softened.

Analysts say the outlook indicates Pinterest is losing momentum at a time when larger rivals are gaining ground.

The company expects first-quarter revenue of $951 million to $971 million, below the average analyst estimate of $980.1 million. The weaker forecast contrasts with stronger recent performance from competitors such as Snap and Reddit.

At Evercore, analysts downgraded the stock, citing a steady slowdown in revenue growth and concern that competition from Google, Meta, Reddit and others is intensifying.

They also flagged the potential return of TikTok in the U.S. and new ad tools from OpenAI as future risks to ad spending share.

Bank of America also downgraded the stock, saying the gap between Pinterest’s growth and the broader sector is widening.

BofA pointed to tariff-driven weakness among retail advertisers and said AI-powered ad tools at larger platforms are making it harder for Pinterest to capture new budgets. It added that the company’s margin expansion cycle appears to have peaked, limiting profit growth.

Baird cut its rating as well, citing continued pressure from large advertisers and a need to reset expectations after recent restructuring. While user growth and engagement remain healthy, it said monetization is lagging and shares may stay range-bound until execution improves.

JPMorgan, Loop Capital, RBC Capital Markets and Citi, also lowered their ratings, citing slowing ad demand and stronger competition that could weigh on near-term growth.

Related articles

Pinterest shares slide after its downbeat forecast turns Wall Street bearish

Nvidia’s new Alpamayo project: What it means for Tesla?

Morgan Stanley CIO survey: Why AI hype isn’t boosting 2026 IT budgets