Pinterest Forecasts Q1 Revenue at $951M–$971M, Shares Plunge 20%
Pinterest shares fell over 20% on February 13 after a fourth-quarter earnings miss and $951M–$971M first-quarter revenue guidance below the $980.1M consensus. CEO Bill Ready blamed tariff-related drag on retail advertiser spending and outlined plans to court smaller advertisers and expand internationally.
1. Q4 Earnings Miss and Stock Plunge
Shares fell over 20% on February 13, touching their lowest level since April 2020 after a fourth-quarter earnings miss marked the second consecutive quarter of significant losses.
2. Tariff Headwinds Impact Retail Advertising
CEO Bill Ready said tariff-related headwinds cut spending from major retail advertisers, significantly reducing revenue contribution from Pinterest’s largest ad clients.
3. Weak Q1 Guidance Spurs Downgrades
First-quarter revenue was forecast at $951 million to $971 million, below the $980.1 million consensus, prompting at least seven brokerages to downgrade the stock due to slowing ad growth and intensifying competition.
4. Diversification Plans and Competitive Pressures
Pinterest plans to court smaller advertisers and expand internationally while facing rising competition from Google, Meta, Reddit, and emerging AI advertising tools, as well as a potential TikTok return to the U.S. market.