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shares plummeted 20% on Wednesday after lackluster third-quarter earnings as advertising took a hit from larger retailers dealing with tariffs.
The company posted a profit of 38 cents per share adj., while analysts polled by LSEG expected earnings of 42 cents per share. However, the platform’s revenue did meet analyst estimates of $1.05 billion.
“Tariff-related weakness showed up for the first time in our digital ads universe and will reinforce PINS’ lack of customer diversity for the bears and higher macro sensitivity,” RBC wrote in an analyst note.
