Pinterest shares sink despite AI rollout

Core Insights - Pinterest's recent investment in artificial intelligence has not alleviated investor concerns, leading to a 21% drop in shares after the company provided weaker-than-expected guidance and highlighted reduced advertising spending due to trade tariffs [1][2] Financial Performance - Pinterest reported adjusted earnings per share of 38 cents, missing Wall Street's expectation of 42 cents, while revenue met estimates at $1.05 billion, reflecting a 17% increase year-over-year [2] - The company forecasted fourth-quarter revenue between $1.31 billion and $1.34 billion, with the midpoint falling short of Wall Street's estimate of $1.34 billion [4] Market Conditions - The CFO noted a decline in advertising spending in the U.S. and Canada, particularly among larger retailers facing margin pressures from tariffs [3] - The introduction of new tariffs in Q4 is expected to further impact the home furnishing category [3] User Metrics - Pinterest achieved 600 million monthly active users, surpassing analyst expectations of 590 million [4] Competitive Landscape - Pinterest's performance contrasts negatively with peers, as Meta's revenue increased by 26%, Amazon's online ad unit grew by 24%, Alphabet's advertising sales rose nearly 13%, and Reddit reported a 68% surge in sales during the same period [5]