Overview
Argus has moved Pinterest's rating from Buy to Hold. The firm pointed to several near-term pressures: tariff-related pullbacks in ad spending by some Asia-based e-commerce retailers, heavier investment in AI tools by larger rivals such as Alphabet Inc. and Google, and rising operating expenses that have constrained profitability and left limited room for margin expansion.
Earnings and estimates
In response to these dynamics, Argus lowered its 2026 earnings per share estimate for Pinterest to $1.70 from $2.10 and set a 2027 estimate of $2.00. The firm framed those changes around what it sees as decelerating revenue growth and company guidance that came in below consensus.
Quarterly results and guidance
Pinterest reported fourth-quarter revenue of $1.32 billion, an increase of 14% year over year but slightly beneath expectations. The platform added 66 million global monthly active users, bringing the total to 619 million, a figure above forecasts. Global average revenue per user rose 2% to $2.16, a miss versus estimates. Adjusted EBITDA increased to $542 million from $471 million a year earlier, while the adjusted EBITDA margin held at 41%, which was below consensus assumptions that had anticipated modest margin expansion.
For the first quarter of 2026, Pinterest provided revenue guidance in the range of $951 million to $971 million, implying growth of roughly 11% to 14%. Argus noted the midpoint of that range sits below analyst expectations. The company also forecasted EBITDA between $166 million and $186 million for the period.
Strategic moves cited by Argus
Argus described several initiatives Pinterest is pursuing to stimulate shopping activity and advertiser interest: expanding the assortment of products on the platform, using AI to improve recommendation quality, and forming partnerships with Amazon and Google in international markets to raise ad loads and attract additional advertisers. Despite the downgrade to Hold, Argus retained a long-term Buy view on the company while indicating that current headwinds and near-term risks are likely reflected in the stock price.
Analytical note
The combination of tariff-driven ad pullback among certain Asia-based retailers, stepped-up AI investment by larger competitors, and rising operating costs are the specific factors Argus cited in reducing its near-term outlook for Pinterest. The company’s most recent results showed strong user expansion but mixed monetization metrics and guidance that suggests slower revenue momentum in the near term.