Pinterest (NYSE:PINS) Shares Gap Down After Earnings Miss

Pinterest, Inc. (NYSE:PINS) shares gapped down prior to trading on Friday following a dissappointing earnings announcement. 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 traded.

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

Key Headlines Impacting Pinterest

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

Analysts Set New Price Targets

Several equities analysts recently issued reports on PINS shares. UBS Group set a $26.00 price target on shares of Pinterest in a research report on Friday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Pinterest in a research report on Monday, December 29th. Wells Fargo & Company reissued an “overweight” rating and issued a $27.00 target price on shares of Pinterest in a research report on Friday. Sanford C. Bernstein restated an “outperform” rating on shares of Pinterest in a research note on Friday. Finally, Morgan Stanley lifted their price target on Pinterest from $32.00 to $35.00 and gave the company an “overweight” rating in a research report on Tuesday, January 13th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and eighteen have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $29.45.

Insider Activity at Pinterest

In related news, CFO Donnelly Julia Brau sold 22,821 shares of the company’s stock in a transaction that occurred on Wednesday, December 24th. The stock was sold at an average price of $25.86, for a total value of $590,151.06. Following the sale, the chief financial officer owned 540,358 shares in the company, valued at $13,973,657.88. This represents a 4.05% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Malik Ducard sold 6,000 shares of the firm’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 $155,160.00. Following the transaction, the insider directly owned 699,773 shares of the company’s stock, valued at approximately $18,096,129.78. This trade represents a 0.85% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 33,407 shares of company stock valued at $855,925 over the last quarter. Company insiders own 7.06% of the company’s stock.

Hedge Funds Weigh In On Pinterest

Several large investors have recently modified their holdings of PINS. Revolve Wealth Partners LLC bought a new stake in Pinterest during the 4th quarter valued at about $252,000. Integrated Wealth Concepts LLC grew its holdings in shares of Pinterest by 5.9% during the first 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 during the last quarter. Empowered Funds LLC increased its position in shares of Pinterest by 45.6% during the first quarter. Empowered Funds LLC now owns 15,168 shares of the company’s stock valued at $470,000 after acquiring an additional 4,748 shares in the last quarter. Sivia Capital Partners LLC raised 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 acquiring an additional 2,649 shares during the last quarter. Finally, US Bancorp DE raised its holdings 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 acquiring an additional 18,955 shares during the last quarter. Hedge funds and other institutional investors own 88.81% of the company’s stock.

Pinterest Stock Performance

The firm has a 50-day moving average of $24.91 and a 200-day 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.

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.