Pinterest, the popular image-sharing platform that many people use for ideas, inspiration, and creativity, had a very tough day. On Wednesday, the company’s shares fell by a huge 18%. This sudden drop worried many investors because it showed that Pinterest may be finding it hard to grow, especially when big rivals and new tariff rules are putting pressure on the business. If the fall in share price continues throughout the day, the company might lose around $4.36 billion from its total market value. This is a very large amount and shows how serious the situation is.
The problem became more clear when Pinterest shared its latest forecast. The numbers were not very positive, and this made people wonder whether the company will be able to keep growing at a good speed. Compared to other big digital advertising companies, Pinterest’s performance looked weaker. In the same period, companies like Alphabet, which owns Google, Meta, which owns Facebook and Instagram, and Reddit all reported stronger third-quarter revenues. These companies saw good advertisement spending and good business because advertisers continue to trust them for high performance.
Today, many retailers and companies prefer advertising on Meta’s Instagram and Facebook, as well as on TikTok. These platforms have millions of active users every day. They also use advanced AI tools that make it easy for brands to reach the right people with the right ads. Because of this, advertisers feel more confident spending money on those platforms, especially during the holiday season when shopping increases. This shift has made Pinterest’s situation harder because the company does not have the same size of user base or advanced tools as its competitors.
Pinterest’s Chief Financial Officer, Julia Donnelly, shared more details about the company’s problems. She said ad spending was weaker in the United States and Canada during the third quarter. These two countries are Pinterest’s most important markets because they bring in the largest share of revenue. Donnelly explained that “larger U.S. retailers navigate tariff-related margin pressure in the current environment.” What this means is that companies are spending more money because of new tariffs, so they have less money left for advertising.
Tariff changes have especially affected big retailers from China, like Temu and Shein. These companies used to benefit from the “de minimis” exemption, which allowed them to bring goods into the U.S. without paying tariffs if the value was low. But this exemption has now been removed. Because of the new rules, these companies have been cutting back on their marketing budgets. Since many of them used to advertise heavily online, this has affected platforms like Pinterest, which depend on ad spending to earn revenue.
Some analysts believe that Pinterest is performing okay but still lacks a strong push that can speed up its growth. Experts from Piper Sandler said, “Performance has been fine, but we struggle to see a catalyst to drive the business and accelerate growth.” In simple words, they think Pinterest is doing alright, but nothing new or exciting is happening that can help the company grow faster or attract more advertisers.
Pinterest shared its expectations for the next quarter, predicting revenue between $1.31 billion and $1.34 billion. The middle point of this range is slightly lower than the average estimate of $1.34 billion made by analysts who study the company. This small difference may look tiny, but in the stock market, even small gaps can make investors nervous. It signals that Pinterest may not be able to match the strong growth seen by its rivals.
Morgan Stanley analysts added their view, saying, “In a market where companies’ ability to deliver upward revisions from investments and innovation is important to driving multiple and share price appreciation, PINS failed to deliver.” This means that in today’s world, companies need to bring new ideas, new features, or new technologies that make investors hopeful. But Pinterest’s performance did not show such progress, which disappointed the market.
Even with these problems, Pinterest’s shares have still grown 13.6% so far this year. This is actually better than Meta’s 7.2% growth in the same time period. But the sudden drop has now overshadowed this progress. It shows that even though Pinterest has had some positive moments, it is still very sensitive to challenges like competition and economic pressure.
Many people who use Pinterest love it because it feels friendly, calm, and creative. It is a place where users go to find recipes, fashion ideas, home décor inspiration, art, travel plans, and more. The platform has millions of boards and pins shared every day. But when it comes to attracting advertisers, the competition is strong. Platforms like Instagram and TikTok have grown very fast, especially with short-video formats, influencer culture, and AI-supported tools that help brands show their products more effectively.
Pinterest has been trying to improve its shopping features and advertising tools. The company has been encouraging users to shop directly from pins, and it has been trying to make the platform more useful for small businesses. However, these steps are taking time, and the company has not yet reached the level where advertisers feel excited or confident enough to spend more.
The global economic situation has also made advertisers more careful. Tariff rules, rising costs, and uncertainty in multiple markets have made companies reduce their spending. When companies try to save money, marketing budgets are usually one of the first things to get cut. Since Pinterest earns most of its revenue from ads, this becomes a direct problem.
Still, many experts believe Pinterest has strong potential because its users come to the platform with a positive mindset. People who use Pinterest are usually looking for ideas and inspiration, which can make them more open to trying new products. But for Pinterest to use this advantage, it needs to innovate faster and find new ways to attract advertisers, especially during competitive seasons like the holidays.
Pinterest’s latest forecast and the sharp fall in its shares are a clear reminder that the digital advertising world is changing quickly. Companies need to stay flexible, creative, and technologically strong if they want to compete with giants like Meta and TikTok. For Pinterest, the challenge now is to regain investor trust, bring new ideas, and show that it can grow even when the market is tough.
