Pinterest Misses Q4 Targets, Shares Slump 25% YTD with $1 B Elliott Note
Pinterest shares have fallen about 25% year-to-date after Q4 revenue grew 14% but missed consensus, and Q1 revenue and EBITDA guidance fell 2% and 14% below forecasts. Rosenblatt reiterated a Neutral rating and $20 price target after Elliott’s $1 billion convertible note and buybacks, warning that large language models create headwinds.
1. Share Performance and Q4 Results
Pinterest’s shares have tumbled about 25% in 2026 following a fourth-quarter revenue increase of 14% year-over-year that nonetheless fell short of consensus estimates, far outpacing the Internet Content & Information industry’s 2.6% decline over the same period.
2. Q1 Guidance Miss
Management’s first-quarter revenue and adjusted EBITDA guidance came in roughly 2% and 14% below midpoint forecasts, while Q4 adjusted EBITDA also missed projections by about 2%, intensifying pressure after recent results.
3. Analyst Ratings and AI Risks
Rosenblatt reiterated its Neutral rating and $20 price target, citing broader software weakness, while TD Cowen lowered its target from $44 to $36 but maintained a Buy rating. Analysts caution that emerging large language models could challenge Pinterest’s platform relevance.
4. Elliott Investment and Buybacks
Elliott committed $1 billion through a convertible note and supported an expanded share buyback program, underscoring confidence in Pinterest’s balance sheet even as operational headwinds persist.