Meta Platforms stock was hit hard last month – along with shares of Reddit and Pinterest – by fears tariffs and a policy change targeting China e-commerce would slow the digital advertising spending that powers social media stocks. But the companies are telling investors they aren't worried – at least not yet.
Pinterest late Thursday offered a June-quarter sales forecast ahead of expectations, following similar upbeat outlooks from Reddit and Facebook parent company Meta. Pinterest stock was trading more than 7% higher at 29.97 on the stock market today following the results.
"Our business, including our top line revenue growth, remains healthy," Pinterest Chief Executive Bill Ready told analysts on a conference call. "This is an indication that our efforts to build a more engaging and actionable product for our users and a more performant product for our advertisers are working."
Beyond social media, digital adverting players including Google-parent Alphabet, the Trade Deskand AppLovin each gained following their recent quarterly reports.
Meta Stock, Pinterest Gain On Q1 Reports
The results could help soothe at least some concern that advertisers will immediately pull back spending in response to President Donald Trump's tariffs. Multiple ad market forecasters had already lowered estimates for total ad spending growth in 2025 before Trump announced his plan, citing general economic uncertainty. The elimination of the de minimis exemption – which allows packages valued under $800 to enter the U.S. duty-free – for Chinese e-commerce retailers is also expected to weigh on the digital ad market.
Pinterest Chief Financial Officer Julia Donnelly told analysts Thursday that the company has seen a reduction in U.S. ad spending from China-based e-commerce companies.
"However, we've also seen a geographic diversification from some of those Asia-based retailers to our European and Rest of World user regions," Donnelly said. "And that's a theme that has continued to play out over multiple quarters now and continues today."
Meta CFO Susan Li had a similar message during the company's earnings results last month. Temu and Shein were among Meta's top advertisers in 2023 and 2024, according to analyst estimates. But Li said ad trends have "generally been healthy" for the current quarter despite reduced spending from Asia e-commerce exporters.
Reddit Chief Operating Officer Jen Wong, meanwhile, told analysts last week that the company is "off to a good start" for the current quarter. Reddit stock, however, slumped last week despite the positive ad market commentary, as the company also flagged that it had seen inconsistent user growth patterns in recent weeks.
Snapchat parent Snap has so far been the exception. The social media and messaging company declined to provide Q2 guidance when it reported Q1 results in late April, citing macroeconomic uncertainty. Snap stock slumped on the news.
Pinterest Stock Now Outperforming S&P 500
Analysts were largely positive on Pinterest's results.
"Our concerns around tariffs, the de minimis exception, and potential consumer slowdown did not lead to a downturn in ad revenue," Jefferies analyst James Heaney wrote to clients Friday. "As a result we increase fiscal year 2025 estimates (which we had cut after tariff announcements): Revenue +3% and EBITDA +5%."
Heaney reiterated a neutral hold call on Pinterest stock.
Bernstein analyst Mark Shmulik reiterated an outperform call for Pinterest after the report, citing Q2 guidance that was "comfortable above a lowered bar." But there is still plenty of uncertainty, he acknowledged.
"On one hand, the guidance may still land conservative if retail and CPG (consumer packaged goods) spend holds up against a much easier year-over-year comparison, but on the other hand, well, we just don't really know," Shmulik wrote.
With its gains so far, Pinterest is ahead 3.9% in 2025, compared to a year-to-date loss of 3.8% for the S&P 500.
Meta stock, meanwhile, was up a fraction in recent trading near 599. Shares of the Facebook parent company are ahead 2% this year. Reddit stock was down a fraction at 107.68 in recent action, dragging it further down to a 35% slump this year after a big post-IPO rally in 2024. Snap shares are up more than 1% at 8.32 Friday morning but down 23% year-to-date.
