Investing.com -- Argus downgraded Pinterest from Buy to Hold, citing tariff-related pressure on retailer advertising and intensifying competition in artificial intelligence. The firm noted that some Asia-based e-commerce retailers are spending less on ads due to tariffs, while larger rivals such as Alphabet Inc. and its subsidiary Google are investing more heavily in AI tools.

Argus lowered its 2026 earnings estimate to $1.70 per share from $2.10 and set a 2027 estimate of $2.00 per share, pointing to decelerating revenue growth and guidance that came in below consensus. Pinterest reported fourth-quarter revenue of $1.32 billion, up 14% year over year but slightly below expectations. Global monthly active users rose by 66 million to 619 million, above forecasts, while global average revenue per user increased 2% to $2.16, missing estimates.

Adjusted EBITDA rose to $542 million from $471 million a year earlier, with the margin steady at 41%, below consensus expectations for modest expansion. For the first quarter of 2026, the company guided revenue of $951 million to $971 million, implying 11% to 14% growth, with the midpoint below analyst estimates. It expects EBITDA of $166 million to $186 million. Argus said Pinterest is seeking to boost shopping activity by adding products, improving recommendations with AI and partnering with Amazon and Google in international markets to increase ad loads and attract new advertisers.