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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.

India Tribunal Lifts WhatsApp Data-Sharing Ban but Upholds Meta’s $25 Million Fine

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An Indian appeals tribunal has overturned a five-year ban preventing WhatsApp from sharing user data with other Meta-owned entities but upheld a $25.4 million fine, delivering a mixed verdict for the U.S. tech giant.

The National Company Law Appellate Tribunal (NCLAT) ruled on Tuesday that the Competition Commission of India’s (CCI) 2024 order lacked sufficient justification for restricting data sharing, calling the regulator’s rationale “missing altogether.” However, it agreed with the CCI’s finding that Meta had abused its market dominance by imposing unfair terms on users.

WhatsApp had challenged the CCI’s ban, warning it could have been forced to roll back certain features if the restriction remained. Meta, in turn, argued that the watchdog lacked the technical expertise to assess the implications of its decision.

The dispute dates back to 2021, when changes to WhatsApp’s privacy policy sparked widespread backlash in India. Regulators accused the company of pressuring users to accept new data-sharing terms or risk losing access to the platform.

A Meta spokesperson said the company is reviewing the tribunal’s written order and reiterated that the 2021 privacy update “did not change the privacy of people’s personal messages, which remain end-to-end encrypted.”

India is Meta’s largest market globally, with hundreds of millions of users across WhatsApp, Facebook, and Instagram — making the ruling a critical development for the company’s operations in the country.

The Global AI Buildout Accelerates as Tech Titans Drive Record Investment

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The global race to build artificial intelligence infrastructure shows no sign of slowing, as technology giants and industrial firms alike pour trillions into data centers, chips, and computing power. Nvidia’s market value soared past $5 trillion this week — a milestone that underscores how central AI has become to the global economy.

In a whirlwind week for the tech sector, Microsoft and OpenAI struck a landmark deal expanding the ChatGPT maker’s fundraising capacity, while Amazon announced 14,000 corporate job cuts just days before its cloud division reported its fastest growth in nearly three years. Together, these developments highlight AI as the defining engine of modern corporate spending and stock market momentum.

AI’s impact now extends beyond Silicon Valley. Over 100 non-tech companies — from Honeywell and GE Vernova to Caterpillar — referenced data centers in their earnings calls, signaling how deeply AI demand is reshaping industrial supply chains. Caterpillar’s data center equipment sales jumped 31% last quarter, reflecting the sector’s explosive growth.

Goldman Sachs projects global AI-related infrastructure spending could reach up to $4 trillion by 2030. Microsoft, Amazon, Meta, and Alphabet are expected to collectively invest around $350 billion this year alone. Meanwhile, AI investment is fueling international trade, with the U.S. importing vast quantities of semiconductors from Taiwan, South Korea, and Vietnam.

Despite talk of an AI “bubble,” companies continue to ramp up spending. Apple plans to significantly boost AI investments, and Amazon is projecting capital expenditures of $125 billion in 2025. Economists say this phase of the AI revolution remains in its early stages — with innovation advancing faster than any technology cycle in recent history.