Pinterest (NYSE:PINS) Shares Gap Down Following Weak Earnings

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 changing hands.

The company reported $0.67 earnings per share for the quarter, missing the consensus estimate of $0.68 by ($0.01). The company had revenue of $1.32 billion during the quarter, compared to the consensus estimate of $1.33 billion. Pinterest had a return on equity of 7.93% and a net margin of 9.87%.The business’s revenue for the quarter was up 14.3% on a year-over-year basis. During the same quarter last year, the firm earned $0.56 EPS.

Pinterest News Roundup

Here are the key news stories impacting Pinterest this week:

• Positive Sentiment: Pins still growing users and revenue — Q4 revenue rose ~14% YoY and Monthly Active Users increased ~12% to ~619M; the company delivered GAAP profit for the quarter. Pinterest Announces Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Balance-sheet strength and shareholder returns — analysts and commentators note a robust net-cash position and active buybacks, which supporters argue make the valuation attractive on a cash-adjusted basis. Pinterest: The Market Has Lost Its Mind, 25% Net Cash, Big Buybacks
• Neutral Sentiment: Mixed beats — adjusted EPS metrics topped some estimates even as headline EPS and revenue slightly missed consensus; interpretation depends on whether ad demand recovers. Pinterest (PINS) Q4 Earnings Top Estimates
• Negative Sentiment: Tariff-driven advertiser pullback — management said large U.S. retailers scaled back ad spend because of tariff-induced uncertainty; that directly drove a downbeat Q1 revenue outlook. Pinterest plunges as tariffs weigh on large customers’ ad spending
• Negative Sentiment: Weak guidance and slight misses — Q4 EPS was $0.67 vs. $0.68 consensus and revenue $1.32B vs. $1.33B; Q1 revenue guide of $951–971M came in below Street estimates, prompting heavy selling. Pinterest shares tank 20% on earnings miss, weak guidance
• Negative Sentiment: Analyst target cuts and downgrades — multiple firms trimmed price targets (and some ratings), reflecting concerns about ad competition (Meta) and near-term revenue momentum. Guggenheim price target lowered
• Negative Sentiment: Regulatory / legal watch — an investor investigation notice (Pomerantz) was filed post-results, adding an additional risk factor for holders. Pomerantz investor alert

Analysts Set New Price Targets

A number of equities analysts have issued reports on PINS shares. Evercore ISI set a $25.00 price objective on shares of Pinterest and gave the company an “in-line” rating in a research note on Friday. The Goldman Sachs Group reissued a “buy” rating and issued a $23.00 price target on shares of Pinterest in a research note on Friday. Rosenblatt Securities decreased their price objective on Pinterest from $30.00 to $20.00 and set a “neutral” rating for the company in a research note on Friday. Morgan Stanley increased their target price on shares of Pinterest from $32.00 to $35.00 and gave the stock an “overweight” rating in a report on Tuesday, January 13th. Finally, Monness Crespi & Hardt cut shares of Pinterest from a “buy” rating to a “neutral” rating in a research report on Wednesday, November 5th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eighteen have issued a Hold rating to the company. According to data from MarketBeat.com, Pinterest has a consensus rating of “Moderate Buy” and an average price target of $26.31.

Insiders Place Their Bets

In related news, insider Malik Ducard sold 2,293 shares of Pinterest stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $22.06, for a total value of $50,583.58. Following the sale, the insider owned 695,187 shares of the company’s stock, valued at approximately $15,335,825.22. The trade was a 0.33% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Donnelly Julia Brau sold 22,821 shares of the 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 completion of the sale, the chief financial officer directly owned 540,358 shares of the company’s stock, valued at approximately $13,973,657.88. The trade was a 4.05% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders sold 33,407 shares of company stock worth $855,925. 7.06% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Envestnet Asset Management Inc. lifted its stake in shares of Pinterest by 30.4% in the third quarter. Envestnet Asset Management Inc. now owns 1,036,157 shares of the company’s stock valued at $33,333,000 after buying an additional 241,527 shares in the last quarter. Peak Retirement Planning Inc. bought a new stake in Pinterest during the 3rd quarter worth approximately $1,850,000. Allspring Global Investments Holdings LLC raised its stake in shares of Pinterest by 15.2% in the third quarter. Allspring Global Investments Holdings LLC now owns 835,179 shares of the company’s stock worth $26,600,000 after purchasing an additional 110,089 shares during the last quarter. Renaissance Group LLC lifted its holdings in shares of Pinterest by 4.5% in the second quarter. Renaissance Group LLC now owns 1,019,178 shares of the company’s stock valued at $36,548,000 after purchasing an additional 43,541 shares in the last quarter. Finally, Oppenheimer Asset Management Inc. boosted its position in shares of Pinterest by 243.1% during the second quarter. Oppenheimer Asset Management Inc. now owns 69,446 shares of the company’s stock valued at $2,490,000 after buying an additional 49,204 shares during the last quarter. 88.81% of the stock is currently owned by institutional investors and hedge funds.

Pinterest Price Performance

The firm has a market cap of $10.41 billion, a P/E ratio of 25.25, a P/E/G ratio of 0.67 and a beta of 0.92. The company has a fifty day moving average of $24.68 and a 200-day moving average of $29.93.

About Pinterest

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.