Pinterest, Inc. (PINS) shares plummeted 24.70% during intraday trading on Friday. The sharp decline follows the company's release of disappointing fourth-quarter 2025 financial results and a weak outlook for the first quarter of 2026.

The visual search and discovery platform reported quarterly revenue that missed analyst expectations, while its adjusted earnings per share came in slightly below forecasts. More concerning to investors was the company's guidance, which projected first-quarter revenue significantly below Wall Street estimates, signaling a deceleration in growth.

According to company executives and analysts, the weak performance is driven by a pronounced pullback in advertising spending from large U.S. retailers who are protecting their margins amid economic pressures from tariffs. Pinterest also 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.

Compounding these challenges are growing concerns about AI disruption, with analysts warning that artificial intelligence could potentially remove the need for a middle player like Pinterest as the technology combines both discovery and purchase functions. The disappointing results prompted numerous analyst firms to slash their price targets on the stock, further eroding investor confidence in the company's near-term growth trajectory amid a challenging digital advertising landscape.