Pinterest, Inc. (PINS) shares plummeted 18.93% in pre-market trading on Friday, extending sharp losses from the prior evening's post-market session.

The steep decline follows the company's release of fourth-quarter 2025 financial results that missed analyst expectations for both earnings per share and revenue. Furthermore, Pinterest issued first-quarter 2026 revenue and adjusted EBITDA guidance that fell significantly below Wall Street estimates, signaling a concerning deceleration in growth.

According to company executives and analysts, the weak performance and outlook are driven by a pronounced pullback in advertising spending, particularly from large retailers who are protecting their margins amid economic pressures from tariffs. Additionally, Pinterest faces intensifying competition for digital advertising dollars from larger social media platforms like TikTok and Meta's Instagram and Facebook, which leverage massive user bases and advanced AI-powered advertising tools.

The disappointing results prompted several analyst firms to slash their price targets on the stock, compounding negative sentiment. The pre-market plunge reflects ongoing investor concerns about the company's near-term growth trajectory amid a challenging digital advertising landscape.