Pinterest (PINS) is facing "heightened" artificial intelligence risk and could potentially lose market share to competitors as the digital advertising industry continues to adopt AI, Wedbush Securities said in a note Monday.
The company's Q4 revenue growth outlook is 100 basis points below initial expectations and reflects a "less constructive range of outcomes" for its platform, weighed down by tariffs and macro uncertainties, the investment firm said.
Investors are also concerned over consumers' increasing adoption of competing agentic commerce tools, analysts said, noting that advertisers are moving to "top channels" where AI drives sales as well as engagement.
The investment firm said it sees "limited visibility" into catalysts that could spur growth for Pinterest.
Wedbush downgraded Pinterest to neutral from outperform, and cut its price target to $30 from $34.
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