Pinterest's shares dropped 15% after announcing weaker ad spending in the U.S. due to the removal of the 'de minimis' trade loophole. This change forced Asian e-commerce companies to reduce their U.S. marketing budgets and shift focus towards Europe, negatively impacting Pinterest's ad revenue. User growth slowed significantly in North America, adding to investor concerns. While Pinterest is investing in shopping and personalization tools to increase engagement, rising costs and weaker revenue growth are squeezing profits, with quarterly adjusted earnings falling short of expectations.
"Pinterest shares plunged about 15% on Friday after the image-sharing platform warned of weaker ad spending in the U.S., its biggest market, due to the removal of the 'de minimis' trade loophole."
"With U.S. tariffs in place, the trend is expected to continue as the company saw a 25% decline in advertising prices in the second quarter."
"The stalled user growth is a 'significant' concern, indicating that regaining relevance in social media can be difficult after losing it, as seen with defunct platforms like MySpace and Vine."
"Pinterest has been doubling down on investments in shopping tools and personalization to boost engagement and attract more ad dollars, despite increasing costs impacting profits."
Collection
[
|
...
]