Pinterest (PINS) reported weaker-than-expected Q4 results and issued disappointing Q1 guidance, pointing to a slowing growth trajectory, Wedbush Securities said in a note Friday.
The brokerage highlighted that ad spending remains under pressure, with US retailers hit by tariff-related headwinds and ad pricing being dragged down by a mix shift to under-monetized international markets.
Pinterest has struggled to reaccelerate growth and faces limited near-term catalysts, Wedbush said as it cut its 2026 revenue estimate to $4.75 billion from its prior outlook of $4.84 billion, along with lower adjusted EBITDA margins.
The brokerage is also now projecting a 13.6% three-year revenue compound annual growth rate, compared with previous outlook of 14.6% and management's guidance for mid-to-high teens, reinforcing its cautious stance on the stock.
Wedbush lowered its price target to $16 from $30, and maintained its neutral rating on the stock.
Shares of Pinterest were down about 20% in recent trading Friday.
Price: 14.84, Change: -3.71, Percent Change: -19.98