Pinterest (NYSE:PINS) Shares Gap Down on Disappointing Earnings

Shares of Pinterest, Inc. (NYSE:PINS) gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $18.54, but opened at $14.33. Pinterest shares last traded at $14.8970, with a volume of 19,046,628 shares.

The company reported $0.67 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.01). Pinterest had a net margin of 48.99% and a return on equity of 8.20%. The business had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.33 billion. During the same period in the previous year, the company earned $0.56 earnings per share. The company’s revenue for the quarter was up 14.3% compared to the same quarter last year.

Key Pinterest News

Here are the key news stories impacting Pinterest this week:

• Positive Sentiment: Pins: Q4 revenue growth and user gains — Pinterest reported Q4 revenue up ~14% and record global MAUs (619M), showing continued user engagement that supports long‑term ad monetization potential. BusinessWire Q4 Release
• Positive Sentiment: Some analysts remain constructive (buy ratings) despite lower targets — Benchmark and Guggenheim cut price targets but kept “buy” calls, signaling some firms still see upside from longer‑term growth. Benzinga The Fly
• Positive Sentiment: Earnings context: small EPS beat on some measures — select outlets (Zacks) highlighted that EPS roughly met/beat consensus on differing measures, which tempers the headline miss narrative. Zacks
• Neutral Sentiment: Bank of America reaffirmed a “neutral” rating with a $19 target, trimming expectations materially from prior levels — this reflects cautious near‑term visibility but not an outright sell view. TickerReport / Benzinga
• Negative Sentiment: Tariff shock hitting retailer ad budgets — Pinterest said large U.S. retailers have pulled back ad spending due to tariff-related uncertainty; this was cited as the main driver of a sharp premarket selloff. Reuters: Tariffs Weigh on Ad Spend
• Negative Sentiment: Weak Q1 revenue guidance — Pinterest set Q1 revenue guidance of ~$951M–$971M, below Street estimates, signaling a near‑term slowdown in ad demand and pressuring the stock. (Covered in earnings articles linked below.) CNBC: Earnings & Weak Guidance
• Negative Sentiment: Multiple price‑target cuts and downgrades — JPMorgan cut PINS from overweight to neutral ($20 PT), Rosenblatt trimmed to $20 (neutral), and several firms reduced targets, signaling reduced upside in near term.
• Negative Sentiment: Regulatory / litigation risk — Pomerantz launched an investor investigation into Pinterest, adding legal overhang that could increase costs or distraction. PR Newswire

Analyst Upgrades and Downgrades

PINS has been the subject of several research reports. KeyCorp decreased their price objective on shares of Pinterest from $40.00 to $35.00 and set an “overweight” rating for the company in a report on Tuesday, February 3rd. Royal Bank Of Canada downgraded shares of Pinterest from an “outperform” rating to a “sector perform” rating in a research report on Friday. The Goldman Sachs Group lowered their price target on Pinterest from $36.00 to $32.00 and set a “buy” rating on the stock in a report on Tuesday, January 13th. Oppenheimer set a $24.00 price target on Pinterest and gave the stock an “outperform” rating in a research note on Friday. Finally, Wells Fargo & Company reiterated an “overweight” rating and set a $27.00 price objective on shares of Pinterest in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and eighteen have assigned a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $29.45.

Insiders Place Their Bets

In other news, insider Malik Ducard sold 6,000 shares of Pinterest stock in a transaction dated Wednesday, December 24th. The stock was sold at an average price of $25.86, for a total transaction of $155,160.00. Following the transaction, the insider directly owned 699,773 shares of the company’s stock, valued at $18,096,129.78. The trade was a 0.85% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Donnelly Julia Brau sold 22,821 shares of the business’s stock in a transaction that occurred on Wednesday, December 24th. The shares were sold at an average price of $25.86, for a total value of $590,151.06. Following the transaction, the chief financial officer owned 540,358 shares of the company’s stock, valued at approximately $13,973,657.88. This trade represents a 4.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 33,407 shares of company stock worth $855,925. 7.06% of the stock is owned by insiders.

Hedge Funds Weigh In On Pinterest

Several large investors have recently added to or reduced their stakes in PINS. Revolve Wealth Partners LLC bought a new position in shares of Pinterest in the fourth quarter worth approximately $252,000. Integrated Wealth Concepts LLC lifted its stake in shares of Pinterest by 5.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 10,943 shares of the company’s stock valued at $339,000 after buying an additional 607 shares in the last quarter. Empowered Funds LLC boosted its holdings in Pinterest by 45.6% in the 1st quarter. Empowered Funds LLC now owns 15,168 shares of the company’s stock worth $470,000 after buying an additional 4,748 shares during the period. Sivia Capital Partners LLC boosted its holdings in Pinterest by 39.5% in the 2nd quarter. Sivia Capital Partners LLC now owns 9,347 shares of the company’s stock worth $335,000 after buying an additional 2,649 shares during the period. Finally, US Bancorp DE increased its stake in Pinterest by 87.6% in the 2nd quarter. US Bancorp DE now owns 40,596 shares of the company’s stock worth $1,456,000 after buying an additional 18,955 shares in the last quarter. Hedge funds and other institutional investors own 88.81% of the company’s stock.

Pinterest Stock Down 21.3%

The stock has a fifty day simple moving average of $24.91 and a 200 day simple moving average of $30.14. The firm has a market capitalization of $9.86 billion, a P/E ratio of 5.07, a PEG ratio of 0.83 and a beta of 0.92.

Pinterest Company Profile

Pinterest, Inc operates a visual discovery platform that helps users find inspiration and ideas for projects ranging from home design and fashion to cooking and travel. Users create and curate “Pins” — images or videos linked to content — organized on thematic boards. The service is available through its website and mobile applications and emphasizes personalized recommendations and visual search to surface relevant content based on user interests.

The company’s primary revenue model is advertising, offering promoted content formats that integrate into user feeds and search results.