Pinterest (PINS) is at risk of losing market share as the digital advertising industry navigates AI-driven competition, Wedbush Securities said in a Tuesday note.

Earlier in the day, Pinterest disclosed a restructuring plan under which the company expects to reduce its workforce by about 15%.

The brokerage said the restructuring is in line with their view that Pinterest faces rising threats from consumer adoption of AI-enabled platforms and agentic commerce tools, with the actions signaling a shift in strategic priorities.

"As AI compresses the market of discovery and purchase on competing platforms, the value proposition of subscale players, such as Pinterest, erodes," analysts said.

Analysts noted that while Pinterest has improved its ability to collect and measure intent signals, the company still lacks full commerce visibility relative to key peers, limiting the effectiveness of its advertising platform.

Wedbush has a neutral rating and a $30 price target on the stock.

Pinterest shares were down more than 9% in recent trading.

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