Pinterest (PINS) Fell 40% in Q1

Soumya Eswaran Mon, July 6, 2026 at 10:45 AM EDT 4 min read **

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RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its "RiverPark Large Growth Fund" Q1 2026 investor letter. A copy of the letter can be downloaded here. The US stock market declined in the quarter with the S&P 500 index ("S&P") and the Russell 1000 Growth index ("RLG") falling 4.33% and 9.78%, respectively. Markets started the year positively but became volatile mainly due to increased tensions with Iran. The Federal Reserve kept rates unchanged in January and February. Still, rising energy prices and weaker economic data sparked concerns about stagflation, leading investors to rethink the timing and scale of future rate cuts. Investor sentiment shifted from growth and tech stocks amid inflation, interest rate, and supply chain concerns. Opposing AI-driven rotations heavily influenced investor sentiment, affecting growth stocks—enthusiasm grew for semiconductor firms linked to AI infrastructure spending, while enterprise software companies, viewed as vulnerable to AI disruption, faced pessimism. The Fund's software holdings were sold off heavily, while the underweight in semiconductor companies, which benefited most from AI infrastructure spending, affected the performance. Despite challenges, the firm remains confident in the long-term prospects and valuations of its portfolio companies. Please review the Fund's top five holdings to gain insights into their key selections for 2026.

In its first-quarter 2026 investor letter, RiverPark Large Growth Fund highlighted Pinterest, Inc. (NYSE:PINS). Pinterest, Inc. (NYSE:PINS) is a social media and visual discovery platform that enables users to find ideas, such as recipes, home, and style inspiration. On July 2, 2026, Pinterest, Inc. (NYSE:PINS) closed at $22.07 per share. One-month return of Pinterest, Inc. (NYSE:PINS) was 1.77%, and its shares lost 38.90% over the past 52 weeks. Pinterest, Inc. (NYSE:PINS) has a market capitalization of $12.36 billion.

RiverPark Large Growth Fund stated the following regarding Pinterest, Inc. (NYSE:PINS) in its Q1 2026 investor letter:

"Pinterest, Inc.** (NYSE:PINS): PINS was a significant detractor for the quarter, declining 40% before we exited the position. Pinterest's Q4 2025 earnings report, released in February, was disappointing: revenue of $1.32 billion grew 14.3% year-over-year but missed the $1.33 billion consensus, adjusted EPS of $0.67 fell short of expectations, and Q1 2026 revenue guidance of $951–$971 million came in well below the $980 million the Street had anticipated. CEO Bill Ready attributed the shortfall to an "exogenous shock" from tariffs that caused the company's largest retail advertiser cohort, particularly in home furnishings and décor, to meaningfully pull back on brand advertising budgets. The company also announced approximately 15% workforce reductions and organizational restructuring, further unsettling investors. Multiple analysts downgraded the stock following the report. Given the severity and uncertainty of the near-term headwinds and the seeming lack of uptake on the company's multiple growth initiatives, we exited our position in Pinterest during the quarter."

** Story Continues BMO Capital Sees AI Ad Improvements Supporting Growth at Pinterest (PINS) Pinterest, Inc. (NYSE:PINS) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 49 hedge fund portfolios held Pinterest, Inc. (NYSE:PINS) at the end of the first quarter, compared to 53 in the previous quarter. In Q1 2026, Pinterest, Inc. (NYSE:PINS) delivered $1 billion in revenue, up 18% year over year. While we acknowledge the potential of Pinterest, Inc. (NYSE:PINS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock**.

In another article, we covered Pinterest, Inc. (NYSE:PINS) and shared TimesSquare Capital U.S. Mid Cap Growth Strategy's views on the company. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.