Shares of Pinterest, Inc. plummeted 9.34% during intraday trading on Wednesday, driven by a cautious third-quarter revenue outlook that overshadowed better-than-expected second-quarter results.

While the company reported Q2 revenue of $1.18 billion—up 18% year-over-year—and adjusted earnings per share of $0.43, both surpassing analyst estimates, its guidance for the current quarter fell short of investor expectations. Pinterest forecast Q3 revenue between $1.19 billion and $1.21 billion, representing growth of only 13% to 15%, a sharp deceleration from the prior quarter. Management attributed the slowdown to the non-recurrence of several Q2 tailwinds, including the timing of Amazon Prime Day, World Cup-related advertising spend, and the consolidation of TVScientific.

Further weighing on sentiment were signs of intensifying competition in the digital advertising space, with larger platforms such as Meta’s Instagram and Google’s AI-enhanced visual search competing directly with Pinterest’s core offerings. The company also faces ongoing regulatory headwinds affecting Asia-based cross-border retailers in Europe, which are expected to persist into Q3. The combination of slowing growth, one-time benefits rolling off, and a more challenging competitive environment overshadowed the platform’s record user growth of 640 million monthly active users.