Pinterest slumps after flagging soft ad spend in major market U.S.
Pinterest shares plunged about 15 per cent on Friday after the image-sharing platform warned of weaker ad spending in the U.S., its biggest market, due to the removal of the 'de minimis' trade loophole.
Tariffs-driven uncertainty and a suspension of the exemption that allowed packages valued at or under US$800 to be shipped to the U.S. without facing import duties have forced some Asian e-commerce companies to scale back their U.S. marketing budgets.
Those companies are now focusing on Europe and their home markets, where advertising rates are typically lower than those in North America, impacting ad revenues at Pinterest PINS.O.
The company, known for curating links to lifestyle products such as home decor, fashion accessories and beauty items, saw a 25 per cent decline in advertising prices in the second quarter. With U.S. tariffs in place, the trend is expected to continue.
'Management's comments on tariff concerns extending into the third quarter likely spooked the Street,' Roth Capital Partners analysts said.
A user growth slowdown, especially in North America, also added to investor worries. The company added 8 million users in the quarter to 578 million, lower than the 17 million in the first. It is much smaller than rivals such as Meta-owned Instagram.
The stalled user growth is a 'significant' concern, AJ Bell head of financial analysis Danni Hewson said. 'As followers of the fortunes of MySpace, Bebo and Vine could tell you, it can be hard to regain relevance in the social media world once you have lost it.'
To boost engagement and attract more ad dollars, Pinterest has been doubling down on investments in shopping tools and personalization. But that is pushing up costs just as revenue growth is under pressure, hitting profits.
The company's quarterly adjusted profit per share of 33 cents fell short of expectations of 35 cents on Thursday as total costs and expenses jumped 15 per cent.
---
Reporting by Kritika Lamba in Bengaluru; Editing by Shailesh Kuber
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
34 minutes ago
- Globe and Mail
Diversified Energy Announces Second Quarter Dividend
Diversified Energy Company PLC (LSE: DEC, NYSE:DEC) ('Diversified' or 'the Company') is pleased to announce that the Board has declared an interim dividend of 29 cents per share in respect of 2Q25 for the three month period ended June 30, 2025. Key dates related to this dividend include: Diversified will pay the dividend in U.S. dollars while continuing to make available to shareholders a sterling election. For those shareholders who wish to receive their dividend payment in sterling, and who have not yet completed a currency election form, the Company has made available a dividend election form on its website at Shareholders who wish to receive sterling should submit the currency election form to Computershare Investor Services no later than December 8, 2025. Diversified will announce the sterling value of the dividend payable per share approximately two weeks prior to the payment date. This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No. 596/2014 on Market Abuse ('UK MAR'), as it forms part of the UK domestic law by virtue of the European Union (Withdrawal) Act 2018. For further information, please contact: About Diversified Energy Company PLC Diversified is a leading publicly traded energy company focused on natural gas and liquids production, transport, marketing, and well retirement. Through our unique differentiated strategy, we acquire existing, long-life assets and invest in them to improve environmental and operational performance until retiring those assets in a safe and environmentally secure manner. Recognized by ratings agencies and organizations for our sustainability leadership, this solutions-oriented, stewardship approach makes Diversified the Right Company at the Right Time to responsibly produce energy, deliver reliable free cash flow, and generate shareholder value.
Globe and Mail
an hour ago
- Globe and Mail
Why CoreWeave Stock Skyrocketed Last Week
Key Points CoreWeave stock saw big gains in connection with news that its buyout of Core Scientific could be blocked. CoreWeave has entered into terms to buy Core Scientific in a $9 billion all-stock deal. Shareholders of both companies have some reservations about the acquisition deal. 10 stocks we like better than CoreWeave › CoreWeave (NASDAQ: CRWV) stock recorded huge gains over the past week of trading. The artificial intelligence (AI) company's share price soared 24.4% higher across the stretch. CoreWeave's big stock rally arrived in conjunction with the news that one of the company's big strategic initiatives could face major hurdles. According to reports, CoreWeave's $9 billion deal to buy Core Scientific could wind up being blocked -- but many investors actually seem to be happy with the news. What's next for CoreWeave? CoreWeave announced on July 7 that it had entered into an agreement to purchase Core Scientific at a $9 billion valuation. Even before the deal was officially announced, rumblings of a potential acquisition were met with negative reactions from CoreWeave shareholders. Some big Core Scientific shareholders are also apparently unhappy with the deal. While terms for the potential buyout have already been agreed to, Core Scientific's shareholders still need to approve the acquisition. Along with bullish valuation momentum for the broader AI space, hopes that the buyout could be scuttled helped power big gains for CoreWeave stock this week. What's next for CoreWeave? If CoreWeave were to complete its acquisition of Core Scientific, it would help the company reduce roughly $10 billion in lease expenses. On the other hand, the all-stock deal would result in a substantial amount of share value dilution for current stockholders -- and some investors and analysts are wondering whether the buyout is in the company's best interest. While news about the potential Core Scientific acquisition will probably continue to play a significant role in CoreWeave stock's near-term performance outlook, the AI cloud computing company has strengths that could allow it to deliver strong returns regardless of how the buyout situation resolves. Should you invest $1,000 in CoreWeave right now? Before you buy stock in CoreWeave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and CoreWeave wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025
CTV News
3 hours ago
- CTV News
Retail experts expect back-to-school shopping to be hit by tariff costs
Watch According to analysts back-to-school shopping could be more costly for Canadians due to U.S. President Donald Trump's tariffs. CTV's Abigail Bimman explains.
