Pinterest Stock Drops on Flat US User Growth

Pinterest's second-quarter 2025 revenue rose 17% year-over-year to $998 million, beating expectations, but shares fell by as much as 15% after the company missed adjusted earnings per share estimates at $0.33 and reported flat user growth in the US and Canada at 102 million monthly users. Management attributed weaker US ad spending to the removal of the 'de minimis' trade loophole, prompting some Asian e-commerce clients to reduce US marketing and pressuring advertising prices. Despite these challenges, Pinterest's global monthly active users reached a record 578 million, with Gen Z now comprising over half the user base. The company provided an upbeat Q3 2025 revenue outlook of $1.04 billion at the midpoint, above analyst forecasts. Ongoing investments in shopping tools and personalization are driving higher costs, raising concerns about profitability. Analysts view Pinterest's revenue growth as solid but remain cautious about its ability to regain user growth momentum in a competitive market.