Pinterest shares fell more than 9% Wednesday after Chief Executive Bill Ready warned of mounting challenges in international markets, adding to concerns about the company's growth outlook. Speaking at the Goldman Sachs Communacopia + Technology Conference, Ready said regulatory changes in Europe are creating difficulties for cross-border merchants from Asia, and that Pinterest is changing its global go-to-market strategy in a process he expects could pressure the business in the near term. Investor sentiment has also been affected by the late-August departure of Chief Financial Officer Julia Brau Donnelly. Pinterest's third-quarter outlook calls for revenue growth of 13% to 15%, compared with 18.2% in the second quarter. The company is continuing to invest in artificial intelligence tools, including Performance+, while competing with Meta and Google in digital advertising and visual discovery, and it has more than 600 million monthly users and has entered a $4 billion agreement with Amazon Web Services to support its AI and computer-vision capabilities.
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Alphabet Inc Class CPinterest IncCEO warned European regulatory changes are disrupting cross-border Asian merchants and forcing a go-to-market overhaul that will pressure near-term business.
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