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Pinterest Shares Plunge 18% as Ad Competition and Tariff Pressures Hit Growth Outlook

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Pinterest shares tumbled 18% on Wednesday after the company issued a weaker-than-expected revenue forecast, raising concerns that the image-sharing platform is losing ground to larger digital advertising rivals amid growing tariff-related pressures. If losses hold, the drop would wipe about $4.36 billion off Pinterest’s market value.

The sharp decline contrasts with strong third-quarter results from advertising heavyweights Alphabet, Meta, and Reddit, all of which reported robust ad spending fueled by AI-powered targeting and larger global reach. Analysts said Pinterest’s smaller scale and slower innovation pace are limiting its ability to compete effectively.

Chief Financial Officer Julia Donnelly cited weaker ad spending in the United States and Canada — Pinterest’s biggest markets — as retailers face thinner margins due to new tariffs. “Larger U.S. retailers are navigating tariff-related margin pressure,” Donnelly said, adding that China-based e-commerce giants such as Temu and Shein have also reduced marketing budgets after the removal of the “de minimis” import exemption.

Pinterest now expects revenue between $1.31 billion and $1.34 billion for the current quarter, with the midpoint slightly below analyst expectations of $1.34 billion, according to LSEG data.

“Performance has been fine, but we struggle to see a catalyst for growth,” said analysts at Piper Sandler. Morgan Stanley added that Pinterest “failed to deliver” in a market increasingly rewarding innovation and upward earnings revisions.

Despite Wednesday’s steep loss, Pinterest shares remain up 13.6% for the year — outpacing Meta’s 7.2% gain over the same period.

Meta to Use AI Chat Data to Personalize Content and Ads Starting December

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Meta Platforms announced that beginning December 16, the company will start using users’ interactions with its generative AI tools to personalize both content and advertising across its major apps, including Facebook and Instagram.

The change — which will roll out globally except in the UK, the European Union, and South Korea — will apply to anyone who uses Meta AI, the company’s generative chatbot available via text or voice. Starting October 7, Meta will notify users of the update. However, there will be no option to opt out of this data integration.

AI INTERACTIONS TO SHAPE RECOMMENDATIONS

Meta said that user conversations with its AI — whether discussing travel, sports, or hobbies — will become an additional data signal alongside likes, follows, and other activity to help refine content recommendations and ad targeting.

For example, a user chatting with Meta AI about hiking might later see hiking-related groups, friends’ outdoor posts, or ads for hiking gear.
“People’s interactions simply are going to be another piece of the input that will inform the personalization of feeds and ads,” said Christy Harris, Meta’s privacy policy manager.

The company clarified that AI interactions involving sensitive topics — such as religion, sexuality, health, political affiliation, or ethnicity — will not be used for advertising purposes.

A MASSIVE PERSONALIZATION PUSH

The update is part of Meta’s broader strategy to make its AI ecosystem deeply integrated across all its apps. According to the company, Meta AI now has over 1 billion monthly active users, marking one of the fastest-growing AI deployments worldwide.

At the company’s annual shareholder meeting, CEO Mark Zuckerberg said the goal for 2025 is to make Meta AI the leading personal assistant, emphasizing personalization, natural voice interactions, and entertainment.

The integration comes amid a new phase of AI monetization among tech giants. Both Google and Amazon are already leveraging AI to boost cloud revenues, but Meta’s move is unique for its cross-platform scale and its decision to blend AI chat data with social and ad algorithms.

By combining behavioral, conversational, and contextual signals, Meta aims to offer advertisers more effective targeting while keeping users more engaged through hyper-personalized recommendations.

Former X CEO Linda Yaccarino Takes Helm at GLP-1 Telehealth Startup eMed

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Linda Yaccarino, who recently stepped down as CEO of social media platform X, has been appointed CEO of eMed Population Health, a Miami-based telehealth startup focused on GLP-1 weight loss drugs.

Yaccarino, known for her extensive advertising and digital revenue expertise, led X through a challenging period marked by advertiser skepticism amid controversial content under Elon Musk’s ownership. She previously modernized NBCUniversal’s global advertising business over a decade.

“I brought X through a tremendous growth trajectory, and I’m proud of what we accomplished,” Yaccarino said in a Reuters interview. “Now, it’s the perfect time for a new challenge.”

Founded in 2020, eMed partners with employers and government payers to manage the use of GLP-1 drugs, a class of obesity and diabetes medications whose high costs have limited insurance coverage. Yaccarino emphasized the company’s vision to transform the weight-loss category at a critical moment.

The telehealth sector focused on GLP-1 drugs is growing rapidly but faces increased scrutiny over safety, marketing, and regulatory challenges. Industry experts note Yaccarino’s digital marketing skills will be valuable as the sector shifts toward a direct-to-consumer model.

eMed claims its platform can reduce weight loss program costs by up to 50%, offering live, on-demand care without the need for appointments. The company initially gained traction through at-home COVID-19 testing during the pandemic and later expanded into diagnostics for other illnesses but has since refocused on telehealth services.

Currently, eMed employs between 51 and 200 people.