Pinterest (PINS) Stock Falls After Snap Earnings Spark Digital Ad Concerns

Shares of Pinterest Inc PINS traded lower by 4.45% to $25.11 Wednesday morning after Snap Inc SNAP fell more than 16%, despite posting better-than-expected first-quarter earnings.

The report triggered broader concerns about digital advertising trends affecting social media companies, including Pinterest. Major Indexes are also lower Wednesday following a contraction in first-quarter GDP.

What To Know: Snap reported first-quarter revenue of $1.36 billion, up 14% year-over-year and ahead of estimates, with adjusted EBITDA of $108 million, a 137% increase.

The company added 38 million daily active users over the past year and surpassed 900 million monthly active users. Advertiser activity rose 60%, and Snap highlighted momentum in its Snapchat+ subscription business.

Despite the strong numbers, Snap’s lack of forward guidance and its warning of headwinds in early Q2 rattled investors, raising concerns about broader ad market volatility.

Pinterest, which relies heavily on brand and performance advertising, was caught in the crosscurrents. Investors may interpret Snap's post-earnings plunge as a signal that revenue growth alone may not insulate ad-driven platforms from macroeconomic caution.

Pinterest's smaller scale and ongoing efforts to scale its international ad business might be adding to concerns.

How To Buy PINS Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Pinterest’s case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, PINS has a 52-week high of $45.18 and a 52-week low of $23.68.