Pinterest (PINS) Slashes 21.8%, Nears 52-Week Low

We recently published 10 Stocks Left Behind Amid Wall Street Cheer. Pinterest Inc. (NYSE:PINS) is one of the worst-performing stocks on Wednesday.

Pinterest dropped for a second day on Wednesday, slashing 21.76 percent to close at $25.75 apiece—just $1.62 shy of its 52-week low—after missing analysts’ earnings estimates.

In its third quarter report, Pinterest Inc. (NYSE:PINS) posted earnings per share of $0.38, missing analyst expectations of $0.42.

However, Pinterest Inc. (NYSE:PINS) reported stellar earnings during the period, with net income expanding by 201 percent to $92.1 million from $30.5 million in the same period last year.

Revenues were also higher by 17 percent at $1.049 billion versus $898 million year-on-year.

“Our investments in AI and product innovation are paying off. We’ve become a leader in visual search and have effectively turned our platform into an AI-powered shopping assistant for 600 million consumers. In turn, global advertisers are increasingly counting on Pinterest as a go-to search platform to reach their customers and drive sales,” said Pinterest Inc. (NYSE:PINS) CEO Bill Ready.

For the fourth quarter of the year, Pinterest Inc. (NYSE:PINS) expects revenues to be in the range of $1.313 billion to $1.338 billion, representing a 14 to 16 percent growth year-on-year.

“Our guidance assumes the impact of foreign exchange to be approximately 1 point of tailwind, based on current spot rates. We expect Q4 2025 Adjusted EBITDA to be in the range of $533 million to $558 million,” the company added.

While we acknowledge the potential of PINS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.