Here's how Pinterest's holiday quarter just became a worry for Wall Street

By Claudia Assis

Pinterest's stock heads to lowest in six months on weaker revenue forecast

Pinterest reported 600 million global monthly users last quarter, a 12% rise from 537 million a year before.

Shares of Pinterest Inc. headed to their lowest since May after the social-media company, used by millions to save images and shop for home decor and fashion trends, among other uses, sent a worrying sign late Tuesday about its holiday-quarter advertising business.

Pinterest (PINS) said that it expects fourth-quarter revenue between $1.31 billion and $1.34 billion, which would represent year-over-year growth of 14% to 16%. The midpoint of that range is below the FactSet consensus for revenue of $1.34 billion in the quarter.

The shopping- and hosting-heavy holiday quarter is usually the strongest in terms of revenue for Pinterest. In the fourth quarter of 2024, the company reported sales of $1.15 billion, a 17% jump from $981 million in the fourth quarter of 2023.

The company reported 600 million global monthly users, a 12% rise from 537 million in the year-ago quarter. Growth in the number of U.S. and Canada users, however, stood at 4%.

Third-quarter revenue rose 17% to $1.05 billion, meeting the FactSet consensus. Adjusted per-share earnings of 38 cents was slightly below expectations of 42 cents a share, according to FactSet.

On Wednesday, shares of Pinterest were on track to close at their lowest since May 1, when they closed at $25.49. They were also notching their largest one-day percentage decrease in more than three years.

-Claudia Assis

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

11-05-25 1137ET