Pinterest’s stock plummeted 15% after disappointing Q2 earnings, driven by a 25% drop in ad prices and stalled user growth. The repeal of the U.S. "de minimis" rule for imports under $800 has rattled Asian advertisers, who are shifting budgets to Europe and domestic markets with lower ad rates. User growth slowed sharply to 8 million new users—down from 17 million in Q1—raising concerns about competitiveness against rivals like Instagram. Despite revenue climbing 16.9% to $998 million, adjusted earnings per share of $0.33 missed estimates by $0.02, while costs surged 15%, squeezing margins.
Analyst Optimism Meets Market Skepticism
While Benchmark analysts maintain a $48 price target (30% upside from $36), investor confidence remains shaky. Pinterest’s full-year revenue forecast of $1.033–$1.053 billion aligned with expectations but failed to reassure markets. The reaction underscores how sensitive tech stocks are to minor earnings misses, leaving Pinterest under pressure to revive growth in coming quarters.
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