Shares of Pinterest (PINS) plunged 15.01% in pre-market trading on Friday following the release of its second-quarter earnings report. The social media platform's financial results presented a mixed picture, with revenue surpassing expectations but earnings per share falling short of analyst estimates.

According to the report, Pinterest posted adjusted earnings per share of $0.33, missing the consensus estimate of $0.35. However, the company's revenue came in at $998.2 million, beating the expected $974.8 million and marking a 17% year-over-year increase. Despite the strong top-line growth, investors seemed to focus on the earnings miss and other concerning factors.

One key issue that likely contributed to the stock's sharp decline was user growth stagnation in Pinterest's most lucrative market. The company reported that user growth in the United States and Canada was flat, raising concerns about future revenue potential in these high-value regions. Additionally, Pinterest's CFO noted that some advertisers remain cautious about Q3 spending due to ongoing economic uncertainties.

Despite the negative market reaction, some analysts maintained a positive outlook on Pinterest. Several firms, including JP Morgan, Citigroup, and Barclays, raised their price targets for the stock following the earnings release. These analysts cited Pinterest's steady progress in growing its user base globally, improving engagement, and diversifying ad formats as reasons for optimism.