Here's How Pinterest Mostly Avoids Tariffs

Pinterest Inc.’s stock surged on Friday after the photo-sharing platform delivered a strong earnings report, showing it has largely weathered the challenges posed by President Donald Trump’s extensive tariffs. The San Francisco-based company reported that its first-quarter revenue grew by 16%, surpassing Wall Street’s expectations.

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In addition, Pinterest announced that it now has 570 million global monthly active users, representing a 10% increase compared to the same period last year. Looking ahead, Pinterest projected second-quarter revenue between $960 million and $980 million, again ahead of analysts’ forecasts.

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Chief Financial Officer Julia Donnelly expressed confidence during the company’s earnings call, emphasizing that business trends remained solid not only in the first quarter but also based on early signs in the second. According to a FactSet transcript of the call, Donnelly stated, “We’re seeing strengths in our business, and trends remain healthy both in [the first quarter] and the early signals on [the second quarter].”

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Following the positive report, Pinterest’s stock price jumped 10.2% in Friday’s morning trading. Over the past three days, the stock has climbed 13.7%, marking its best three-day rally since February 11, 2025, when it gained 17.8%, according to Dow Jones Market Data.

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While many companies this earnings season have grappled with the fallout of Trump’s tariff measures, Pinterest has so far escaped major disruption. This resilience is largely thanks to advertisers who have redirected their spending across the platform.

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Donnelly acknowledged that there have been “small pockets” of spending affected by the tariffs, particularly from Asia-based e-commerce retailers operating in the U.S. These challenges stem from changes to the “de minimis exemption” for goods shipped from China and Hong Kong. However, she noted that Pinterest has seen a balancing effect.

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“We’ve also seen a geographic diversification from some of those Asia-based retailers to our European and Rest of World user regions,” Donnelly explained. “And that’s a theme that has continued to play out over multiple quarters now and continues today.” In other words, while some spending has decreased due to tariffs, Pinterest has benefited from increased activity in other regions, helping to offset potential losses.

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Several Wall Street analysts responded positively to Pinterest’s results. In a note released on Friday, Wedbush reaffirmed its outperform rating on the stock, highlighting both the strong first-quarter performance and the promising second-quarter guidance. “Advertiser spending on Pinterest has been resilient, consistent with trends observed in our prior digital advertising survey,” wrote Wedbush analyst Scott Devitt. The firm raised its price target for Pinterest’s stock to $40, up from its previous target of $38.

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This upbeat sentiment sharply contrasts with other companies in the digital advertising and media space. For instance, Snap Inc., the parent company of Snapchat, recently declined to provide forward-looking guidance, citing uncertainties in the economic landscape and their impact on ad revenue. Similarly, streaming-device maker Roku Inc. lowered its outlook over concerns about a pullback in advertising spending.

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Monness Crespi Hardt analyst Brian White also chimed in, noting that Pinterest’s stock was “worthy of a Friday rally.” Maintaining his buy rating, White praised the company’s improvements across several fronts. “Pinterest has enhanced support for advertisers, upgraded the user experience, expanded its shopping capabilities, and tapped third-party ad partners,” he wrote.

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However, White was careful to acknowledge the fierce competition in the digital advertising space and the fact that ad spending remains vulnerable to broader economic shifts. “Digital ad spending is sensitive to the vicissitudes of the economy and the macro darkening,” he warned.

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According to FactSet data, the analyst community remains largely optimistic about Pinterest’s future. Out of 44 analysts surveyed, 34 hold a bullish stance on the stock, nine are neutral, and only one has a bearish outlook.

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Pinterest’s share price has risen 5.8% so far in 2025, outperforming the S&P 500 index, which has fallen 3.4% over the same period. This performance has set Pinterest apart as a notable bright spot, especially at a time when other companies in the social media and digital advertising industries are facing more pronounced challenges.

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Overall, Pinterest’s latest earnings report underscored the company’s ability to adapt and thrive despite external pressures such as tariffs and shifting global trade dynamics. Its growing user base, strong advertiser relationships, and expanding international reach have positioned it well to navigate an increasingly competitive landscape.

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While analysts recognize that macroeconomic risks still loom, many believe Pinterest has the right combination of strengths to continue delivering strong performance in the quarters ahead.

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