Pinterest Shares Plummet on Disappointing Revenue Outlook

The image-sharing platform struggles against fierce competition and weak advertising demand, losing significant market value.

Pinterest's shares dropped over 12% premarket following a bleak third-quarter revenue forecast.
The company expects Q3 revenue between $885 million and $900 million, below analysts' estimates of $906.6 million.
Pinterest faces tough competition from larger platforms like Meta's Instagram and Facebook, and Alphabet.
Advertisers in consumer goods, especially food and beverage, are cutting back, affecting Pinterest's ad revenue.
Despite a 21% year-over-year revenue increase in Q2, Pinterest's outlook has led to multiple brokerages cutting their price targets.