Pinterest beats revenue and earnings estimates but shares fall on slower growth outlook

Pinterest reported revenue of $1.18 billion, beating estimates by 18%, and adjusted earnings of 43 cents per share, surpassing the forecast of 36 cents. Monthly active users reached a record 640 million, driven by Gen Z. However, shares dropped over 8% after the company forecasted slower growth of 13-15% for the next quarter, down from 18%, citing one-off factors like World Cup spending and shifted Amazon Prime Day timing. Pinterest's cost-efficient AI strategy boosts margins, but the market remains concerned about growth and strategic direction amid competition from general-purpose AI assistants.