By Angela Palumbo

Several analysts raised their price targets for Pinterest on Friday -- even as shares of the photo sharing platform tumbled following disappointing earnings results.

The company reported second-quarter earnings of 33 cents a share while analysts surveyed by FactSet expected 35 cents. CFO Julia Donnelly said Asia-based e-commerce retailers pulled back spending in the U.S. because of the elimination of the de minimis exemption.

That exemption previously let lower-cost goods into the U.S. without being subject to tariffs, but was ended by President Donald Trump. Companies that have to pay more to import goods appear to be cutting their ad budgets, or may be focusing on platforms with the most users.

However, Donnelly added the company saw "geographic diversification from some of these and other retailers to our European and Rest of World regions," which helped partially offset the headwind.

Pinterest also reported better-than-expected revenue growth for the quarter.

Still, shares were down 8% on Friday to $36.05 and were on pace for their largest percentage decrease since April 3, according to Dow Jones Market Data. April 3 is the day the stock market took a hit following the initial announcement of Trump's so-called reciprocal tariffs on April 2.

"We believe the pullback in shares after hours is unwarranted, in our view, and is primarily driven by elevated investor sentiment leading into the print due to the strong results from other digital advertising peers," Wedbush analyst Scott Devitt wrote in a note on Friday.

Meta Platforms, Alphabet, and Reddit all recently reported better-than-expected revenue growth due to strong digital ad demand.

Devitt raised his price target on Pinterest to $44 from $42 and maintained an Outperform rating on the stock. He says investors should buy the dip, as better-than-expected revenue gave him "greater conviction in the company's ability to deliver growth."

BofA Securities analyst Justin Post raised his price target to $44 from $41 while also maintaining a Buy rating. He is optimistic Pinterest will keep gaining traction as it focuses on growing its artificial intelligence offerings.

"Pinterest's AI enhancements are still in the early stages, with significant potential to grow shopping usage, improve ad platform efficiency, and boost monetization over a multi-year period," Post said.

Investors have been betting big on Pinterest's AI opportunities. The stock has risen 24% this year, compared with the S&P 500's 8.3% gain.

Monness, Crespi, Hardt analyst Brian White thinks that is a good bet. He raised his price target to $46 from $40 and maintained a Buy rating.

"Pinterest has enhanced support for advertisers, upgraded the user experience, expanded its shopping capabilities, infused AI across the platform, and tapped into third-party ad partners," White said.

Write to Angela Palumbo at angela.palumbo@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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August 08, 2025 13:03 ET (17:03 GMT)

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