Back to blog

Gen Z Darling in Trouble: As Pinterest’s Popularity Hits Records, Investors Count Losses

February 16, 2026

In the investment world, it is generally true that even a historical maximum in platform popularity may not be enough if unfavorable macroeconomics come into play. Pinterest is currently at exactly this paradoxical point. Although its ecosystem has never been more extensive, Q4 financial results and an uncertain outlook for early 2026 triggered a wave of sell-offs.
Gen Z Darling in Trouble: As Pinterest’s Popularity Hits Records, Investors Count Losses

Results Below Expectations

Pinterest closed the past quarter with revenue of $1.32 billion, narrowly missing estimates from analysts surveyed by the London Stock Exchange Group (LSEG) at $1.33 billion. However, the most significant hit was to net profit, which reached $277 million. This represents a significant 85% year-over-year drop, as the company managed a profit of $1.85 billion in the previous year. Lastly, the adjusted EBITDA figure of $541.5 million failed to meet analyst expectations. Combined with a weak Q1 outlook (projecting revenue below the analyst-expected $980 million threshold), this resulted in a nearly 20% drop in stock price on Friday.*

PINS_2026-02-16_10-32-42

Pinterest stock price performance over the last five years*

Impact of Global Tariffs

The main cause of Pinterest's weakened financial performance is not user interest, as many investors likely think, but a specific external factor. CEO Bill Ready has spoken openly about challenges related to tariffs. Pinterest holds a specific position compared to its competitors—its advertising portfolio consists largely of major retailers. These retailers are most affected by new tariffs, which subsequently forced them to immediately and significantly cut digital advertising spend. This high exposure to retail makes Pinterest much more vulnerable to trade decisions than other giants operating in this segment.

Bet on AI

Company management is responding decisively to this unfavorable environment. In January, Pinterest announced a plan to lay off nearly 15% of its employees to increase efficiency. The changes also include a reduction in office space. However, the saved capital isn't just going into savings—according to management, capital expenditures are being directed toward AI. In other words, financial resources are being massively shifted to development teams working on next-generation algorithms for better product targeting and content personalization, aimed at driving profitability in the medium term.

The Power of Gen Z

Despite the financial risks mentioned above, the fundamental side—represented by the user base—remains exceptionally strong. The number of monthly active users grew by 12% year-over-year to a record 619 million. Critically for the future, Gen Z is the fastest-growing demographic group on the platform. This group views Pinterest not only as a place for inspiration but increasingly as a tool for direct shopping, which ultimately confirms the strategic direction toward the platform's e-commerce features.

Investment Perspective

The current situation has split leading investment banks into two camps. Citi downgraded the stock to Neutral, reflecting immediate risks associated with macroeconomic instability. On the other hand, Goldman Sachs acknowledges short-term headwinds but remains optimistic for the long term. For investors, the key question is whether the 20%+ correction is an overreaction to temporary macroeconomic influences or a signal of deeper structural problems. However, if Pinterest successfully integrates AI into its business model and maintains the favor of the younger generation, the current decline may be seen as a risky but potentially advantageous entry point for those who believe in the future of visual search.[1]

[1] Forward-looking statements represent assumptions and current expectations that may not be accurate or are based on the current economic environment, which is subject to change. These statements do not guarantee future performance. Forward-looking statements by their nature involve risk and uncertainty because they relate to future events and circumstances that cannot be predicted, and actual developments and results may differ materially from those expressed or implied in any forward-looking statements.

* Past performance data is no guarantee of future returns.

Sources:

https://investor.pinterestinc.com/financials/quarterly-results/default.aspx https://s204.q4cdn.com/369458543/files/doc_earnings/2025/q4/earnings-result/Q425-PressRelease.pdf

https://s204.q4cdn.com/369458543/files/doc_earnings/2025/q4/presentation/2025-Q4-IR-Earnings-Presentation.pdf

https://www.cnbc.com/2026/02/13/-pinterest-stock-price-tariff-earnings-layoffs.html

Amazon in the Era of AI Investments: Record Revenues Versus a USD 200 Billion Bet on the Future

February 9, 2026

In the investment world, it is often said that markets look forward, not backward. Amazon’s economic results for the fourth quarter of 2025 are a perfect example of this principle. Although the technology giant delivered historically record revenues and confirmed the expansion of its key divisions, the share price reacted with a relatively sharp decline.* The reason, however, lies not in the past, but in an ambitious investment plan for 2026.

Czechoslovak Group (CSG) Successfully Lists on the Stock Market: What Are the Next Prospects?

January 26, 2026

Czechoslovak Group (CSG), a Czech defense group with over 30 years of tradition, has successfully made its way onto the Amsterdam Stock Exchange, marking the start of its journey to become a leader in the global defense industry. Following its Initial Public Offering (IPO), CSG’s shares increased by 31.4%, raising the company’s market capitalization to approximately CZK 770 billion.* CSG has thus immediately surpassed ČEZ, a clear indicator of its growing strength and investment appeal.

Micron Continues Last Year’s Trend: What Is Driving the Growth of This Giant?

January 19, 2026

Shares of Micron Technology have gained approximately 27% since the beginning of the year*. This sharp rise can be defined as a direct reaction to signals from the broader semiconductor ecosystem, particularly following strong quarterly results from TSMC, which confirmed that investments in AI infrastructure are far from over. As one of the few key manufacturers of memory and storage solutions, Micron stands at the very center of the technological transformation. But will this growth continue into 2026?

European Defense Strategy as a Renewed Investment Pillar

January 12, 2026

Defense spending in the European Union has definitively shifted in recent years from the margins of political and investment interest to the center of attention. A combination of persistent geopolitical threats, the armed conflict in Ukraine, growing doubts about the long-term security commitments of the United States toward NATO, and a historical investment deficit is creating an environment in which Europe has no alternative but to significantly strengthen its own defense capabilities. Which companies are likely to benefit the most?

David Matulay

Analyst

David Matulay is an analyst at InvestingFox. He joined the company in 2023 as Head of Trading and Portfolio Manager. Prior to that, he gained three years of experience as a financial analyst at Advena Hedge Fund.
David graduated in Industrial Informatics from the Secondary Industrial School of Electrical Engineering in Bratislava and in Finance, Banking and Investing from the University of Economics in Bratislava. He is currently studying international and diplomatic studies at the University of International and Public Relations in Prague.

Blog