Pinterest shares fall 14% after stalled U.S. user growth and earnings miss

Pinterest Inc. reported second-quarter results that sent its shares plunging by as much as 14% in after-hours trading following the release on August 6, 2025. While the company exceeded revenue expectations, it fell short on earnings and failed to deliver on anticipated U.S. user growth, triggering investor concerns about its long-term trajectory [1]. Revenue for the period totaled $998 million, surpassing the $976 million analysts had forecast. However, adjusted earnings per share came in at $0.33, underperforming the $0.36 consensus estimate [1].

The company reported 578 million global monthly active users, with 102 million in the U.S. and Canada — a figure that remained unchanged from the prior quarter. The lack of growth in its most lucrative region has raised eyebrows among analysts and investors, as North America continues to be the primary source of Pinterest’s revenue [1]. Robert Biggar, a Bloomberg Intelligence analyst, pointed out that user growth is flat in all regions except outside the U.S., signaling potential challenges in sustaining momentum in its core market [1].

Despite the mixed results, Pinterest offered a brighter outlook for the current quarter, projecting revenue of $1.03 billion to $1.05 billion, slightly above the $1.02 billion analysts had expected [1]. The revenue beat was attributed to an expanded advertising business and increased use of AI-driven tools to refine ad targeting and content recommendations. CEO Bill Ready has emphasized a pivot toward shopping and visual search, streamlining the user experience to facilitate product discovery and purchase directly within the app [1].

The stock had surged about 35% year-to-date prior to the earnings release, but the results revealed the volatility typical of Pinterest’s earnings season. Shares had seen double-digit gains after upbeat guidance in May and a strong performance in the holiday quarter of 2024 [1]. However, the latest report failed to inspire confidence, with the stock falling nearly 14% in early trading and continuing to trade lower in the following days [1].

Investor concerns were further amplified by the broader market dynamics. While some tech stocks, such as Duolingo, saw significant gains on improved AI-driven performance, Pinterest’s lack of U.S. user growth highlighted its vulnerability in a high-competition, high-expectation sector [3]. Analysts noted that some Asia-based e-commerce companies had already reduced their U.S. ad spending, a shift that could impact Pinterest’s ability to attract and retain key advertiser partners [2].

The broader advertising ecosystem is also evolving, with marketers increasingly favoring platforms that offer clear user engagement and conversion metrics. As a platform historically built on visual discovery and shopping intent, Pinterest now faces the challenge of proving it can sustain user interest and advertising spend in a maturing market [2].

With flat U.S. user growth, the company will need to demonstrate a clear path forward to reinvigorate engagement and expand its user base. The 14% decline in its shares reflects investor skepticism and the growing pressure on platforms to deliver consistent growth in both users and profitability [1]. Moving forward, Pinterest will be under scrutiny to show that it can innovate and scale effectively in the increasingly competitive digital landscape.

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Source: [1] Pinterest shares plunge 14% as US user growth stalls (https://www.cryptopolitan.com/pinterest-shares-plunge-14/)

[2] Alphabet Inc. (GOOG) Latest Stock News & Headlines (https://uk.finance.yahoo.com/quote/GOOG/news/)

[3] Earnings Announcements (https://www.cnbc.com/earnings-announcements/)