Pinterest stock is falling off a cliff for a surprising reason: Here’s what’s driving the PINS collapse today

Investors in Pinterest (NYSE: PINS) are waking up to a wall of red this morning. The stock price of the popular digital image-sharing board has fallen off a cliff after the company reported its Q4 2025 results yesterday. Here’s what you need to know.

Pinterest’s Q4 2025 results

From a quick glance, Pinterest’s results for its fourth quarter of fiscal 2025 didn’t look too bad. The company reported some impressive gains in a couple of key metrics. Those metrics include:

• Total revenue: $1.32 billion (up 14% year over year)

• Global Monthly Active Users (MAUs): 619 million (up 12% year over year)

However, despite those gains, the company’s $1.32 billion in revenue came in below what analysts were expecting. As noted by CNBC, LSEG consensus estimates were that Pinterest would post $1.33 billion in revenue. 

The company also reported an adjusted earnings per share (EPS) of 67 cents. That was below analyst expectations of an EPS of 69 cents.

Worse, Pinterest said it expects its current-quarter revenue, for Q1 of its fiscal 2026, to be between $951 million and $971 million.

While that range represents year-over-year growth of between 11% and 14%, even the high-end estimate is well below the $980 million analysts were expecting.

Pinterest blames tariffs for earnings miss

So what is behind the worse-than-expected results? The company blamed one primary thing: tariffs.

At first, a tariff’s impact on Pinterest’s revenue might seem a little unbelievable. After all, Pinterest does not import and sell physical goods, which would seem to lessen any potential impact that President Trump’s erratic tariff policies could have on the company’s bottom line.

The problem for Pinterest is that while the company may not be in the business of selling imported goods, many of Pinterest’s main customers—its advertisers—are. And those advertisers are responding to increased tariff costs by cutting back on their ad spend, which impacts Pinterest’s bottom line.

“Many of the largest retailers have been disproportionately impacted by tariffs and have been pulling back on advertising spend across the industry as they seek to protect their margins,” Pinterest’s CEO, Bill Ready, said on the company’s financial call, according to a PitchPook transcript of the call. “Our higher mix of large retailers relative to some of our peers has resulted in us feeling more of an impact.”

But while Ready shifted the blame to tariffs, he also conceded that the company wasn’t diversified enough when it came to its range of advertisers. 

“This highlights the need for us to further accelerate our growth with a broader set of mid-market, SMB, and international advertisers with less than $30 billion of GMV [gross merchandise volume],” Ready said. “This is the next phase of our sales and go-to-market transformation.”

Pinterest’s stock price has had a bad year

Even before today’s 20% premarket decline, PINS stock has been having a rough time lately. The company’s stock price closed at $18.54 yesterday. That represented a fall of more than 28% since the year began, and a staggering 52% drop over the past twelve months.

At its current premarket price of around $14.56 a share, PINS stock has not seen a price this low since early 2020.

To put Pinterest’s recent share price doldrums into a broader context, the stock market Pinterest trades on—the New York Stock Exchange (NYSE)—has seen gains while PINS continues to drop.

Data from Yahoo Finance shows the NYSE Composite Index has risen 5.3% year to date, and more than 15.5% over the past 12 months.