Pinterest (NYSE: PINS) shares tumbled sharply Friday morning, falling 21.77% to $14.48 as of 9:45 AM EST. The stock dropped $4.03 in early trading after the company delivered softer-than-expected revenue guidance and warned that tariff-related retailer ad pullbacks could weigh on short-term performance.
Intraday trading shows the stock sliding rapidly from above $18 earlier in the week to the mid-$14 range, marking one of its sharpest single-day declines in recent quarters.
Q1 Revenue Guidance Misses Expectations
Pinterest guided first-quarter revenue between $951 million and $971 million, representing 11% to 14% year-over-year growth. However, this came in below Wall Street’s consensus estimate of $980.6 million.
- Revenue Guidance: $951M–$971M
- Consensus Estimate: $980.6M
- Adjusted EBITDA: $166M–$186M
Management cited tariffs as a key factor reducing advertising budgets from major retail advertisers across North America and Europe. CEO William Ready described the environment as a tariff-driven “shock,” with impacts expected to be slightly more pronounced in the current quarter.
Full earnings details can be reviewed via Seeking Alpha’s Pinterest coverage.
Q4 Earnings Snapshot
- Q4 Revenue: $1.32B (+14.3% YoY)
- Consensus: $1.33B (slight miss)
- Adjusted EPS: $0.67 (in line)
- Net Income: $277.1M
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Last year’s comparable quarter included a large $1.57 billion income tax benefit, which boosted net income to $1.85 billion, making the year-over-year comparison less representative of operational performance.
User Growth Remains Solid
Despite advertising headwinds, Pinterest continues to expand its global user base.
- Global Monthly Active Users: 616 million (+12% YoY)
- U.S./Canada MAUs: +4%
- Europe MAUs: +9%
- Rest of World: +16%
Average Revenue Per User (ARPU) also improved:
- U.S./Canada: $9.41 (+4%)
- Europe: $1.59 (+15%)
- Rest of World: $0.27 (+42%)
Financial Strength Overview
Pinterest maintains strong financial fundamentals despite near-term uncertainty.
- 5-Year Revenue CAGR: 21.2%
- Free Cash Flow (TTM): $1.047B
- Return on Equity: 48.1%
- Cash on Hand: $1.2B+
- Long-Term Debt: Zero
However, valuation metrics remain elevated:
- EV/EBITDA: 92.46x
- Price-to-Sales: 6.35x
- PEG Ratio: 0.73
Technical Picture
The stock’s sharp drop broke below key short-term levels, with immediate support forming around $14. If that level fails to hold, traders may look toward the $13 range. On the upside, resistance now sits near $16 and $18.
Key Data Snapshot
| Metric | Latest |
|---|---|
| Stock Price | $14.48 |
| Daily Change | -21.77% |
| Q4 Revenue | $1.32B |
| Q1 Revenue Guidance | $951M–$971M |
| MAUs | 616M |
| Free Cash Flow | $1.047B |
| EV/EBITDA | 92.46x |
Pinterest’s steep decline reflects a swift market reaction to short-term advertising concerns. While long-term user growth and cash generation remain strong, tariff-driven retailer pullbacks have introduced fresh uncertainty into the near-term outlook.
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