Shares tumble as Pinterest earnings, outlook disappoint

5th Nov 2025 11:41

(Sharecast News) - Shares in Pinterest Inc plunged on Wednesday, after a disappointing earnings update from the US social media platform.

Posting results after the bell on Tuesday, the San Francisco-based firm said revenues rose 17% in the third quarter to $1.05bn, while global monthly active users increased by more-than-expected, up 12% to 600m.

Net income per share was also higher, rising to $0.38 from $0.32 a year previously.

However, while MAU beat forecasts, earnings disappointed. Consensus had been for $0.42 per share.

Pinterest's forecast for the final three months of the year also weighed on the stock.

It is targeting revenues of between $1.31bn and $1.34bn, whereas Wall Street had pencilled in revenues at the upper end of the range only.

The expected revenue growth - of 14% to 16% - is also below the 17% seen in the previous two quarters.

As at 1230 BST, the stock had slumped 19% in pre-market trading.

Chief executive Bill Ready said it had been a "strong" third quarter.

He continued: "Our investments in AI and product innovation are paying off. We have become a leader in visual search and have effectively turned our platform into an AI-powered shopping assistant for 600m customers."

However, finance chief Julia Donnelly acknowledged there had been "moderating" advertising spend during the quarter in North America, as larger US retailers navigated tariff-related margin pressure.

Morgan Stanley said: "In a market where companies' ability to deliver upward revisions from investments and innovation is important to driving multiple and share price appreciation, Pinterest failed to deliver," according to Reuters.