Pinterest, Inc. (NYSE: PINS) is under heavy pressure again today after tepid holiday‑quarter guidance overshadowed a solid Q3 and record user growth. Shares are trading around the mid‑$20s intraday, extending yesterday’s sell‑off as investors reset expectations for year‑end ad demand and monetization. [1]
The quick take
- Stock slide continues. After falling ~20% yesterday on guidance, PINS is again weak today as traders digest analyst downgrades and price‑target cuts. MarketWatch and Investopedia both flagged the weak outlook as the catalyst, despite robust user growth. [2]
- Record scale, mixed monetization. Q3 revenue rose 17% to $1.049B; monthly active users climbed to an all‑time high of 600M. U.S./Canada ARPU rose 5% to $7.64, while global ARPU was $1.78. [3]
- Guidance stings. Q4 revenue is projected at $1.313B–$1.338B (+14–16% YoY), a notch light versus the Street’s average, putting the crucial holiday season under the microscope. Adjusted EBITDA is seen at $533M–$558M. [4]
What happened
Pinterest’s Q3 2025 print delivered on growth but missed on profitability: revenue hit $1.049B (+17% YoY) and MAUs reached 600M, but adjusted EPS of $0.38 came in below consensus. The miss and a softer‑than‑hoped Q4 outlook triggered the downdraft. [5]
By the numbers (Q3):
- Revenue: $1.049B (+17% YoY)
- MAUs: 600M (+12% YoY)
- ARPU (U.S./Canada): $7.64 (+5% YoY)
- ARPU (Global): $1.78 (+5% YoY)
- GAAP net income: $92M; Adj. EBITDA: $306M
These figures underscore the platform’s global reach while highlighting that monetization in higher‑ARPU regions remains the swing factor. [6]
Why Wall Street is nervous
Holiday‑quarter guidance. Management guided Q4 revenue to $1.313B–$1.338B, which sits just shy of the midpoint of analyst expectations for the seasonally critical period. That softer tone is the main overhang on the stock today. [7]
Tariff‑linked ad pressure. On the heels of earnings, Pinterest pointed to ad budget moderation in the U.S. and Canada—especially among large retailers and certain China‑based cross‑border sellers—after changes around the de minimis tariff exemption. That dynamic added to competitive pressure from larger ad platforms, feeding into the cautious outlook. [8]
The Street reacts: downgrades and target cuts
- Monness Crespi & Hardt downgraded Pinterest to Neutral from Buy following what it called “uninspiring” Q3 results and the softer holiday guide. [9]
- RBC Capital trimmed its price target to $38 (Outperform), citing tariff‑related ad weakness surfacing in Q4 guidance. [10]
- Bank of America cut its target to $39 while maintaining a Buy rating. BMO lowered to $35 (Outperform) and other shops updated views this week. [11]
Who’s buying the dip
Cathie Wood’s ARK Invest stepped in after the post‑earnings slide, purchasing ~522K PINS shares (about $13.4M) across three funds, according to daily disclosures summarized by TipRanks. [12]
Strategy check: AI, shopping, and costs
CEO Bill Ready said Pinterest is leaning on open‑source AI where appropriate, noting “tremendous performance” for visual AI tasks at significantly lower cost versus some proprietary models—important as the company scales recommendations, search, and shoppable experiences. [13]
On the product side, Pinterest has been rolling out AI‑powered upgrades to boards and holiday shopping tools to deepen engagement and help advertisers convert more efficiently—initiatives that matter if ARPU is to accelerate in 2026. [14]
What to watch next
- Holiday ad demand: Does spending from big‑box retail and cross‑border sellers stabilize in time to support Q4? Keep an eye on U.S./Canada ARPU trends. [15]
- Competitive share in performance ads: Pinterest’s ability to win budgets from Meta, Google, TikTok, Reddit—especially with new AI tools—will shape 2026 growth. [16]
- Cost discipline via open‑source AI: If product quality holds while inference costs fall, margin leverage could improve. [17]
- Analyst sentiment: Additional resets (or reversals) in targets and ratings as data points roll in through December. [18]
Bottom line
Pinterest’s user flywheel is spinning faster than ever, but holiday‑quarter monetization is the market’s focus—and today’s tape reflects that reality. With valuation marked down and buy‑the‑dip interest emerging, the next few weeks of ad‑spend signals (and ARPU trajectories) will determine whether this is a reset or a reversal.
Company materials referenced: Pinterest Q3 2025 press release and guidance tables. [19]
Note: Market data reflects trading at publication time and may update intraday.
References
1. www.investopedia.com, 2. www.marketwatch.com, 3. investor.pinterestinc.com, 4. investor.pinterestinc.com, 5. investor.pinterestinc.com, 6. investor.pinterestinc.com, 7. investor.pinterestinc.com, 8. www.reuters.com, 9. www.marketbeat.com, 10. www.tipranks.com, 11. www.marketbeat.com, 12. www.tipranks.com, 13. techcrunch.com, 14. newsroom.pinterest.com, 15. investor.pinterestinc.com, 16. www.reuters.com, 17. techcrunch.com, 18. www.marketbeat.com, 19. investor.pinterestinc.com
