Shares of Pinterest, Inc. (PINS) tumbled 6.22% in pre-market trading on Friday, as investors reacted to President Trump's newly announced tariffs and growing recession concerns. The social media platform, along with other internet sector stocks, faced significant pressure following a report from Bank of America highlighting the potential negative impacts on the industry.

According to BofA analysts, the recently announced tariffs were larger than anticipated and pose "a direct negative" for discretionary retail sales and advertising. This development is particularly concerning for companies like Pinterest, which heavily rely on advertising revenue. The report also emphasized that the entire Internet sector could face challenges as recession fears mount, noting that the sector underperformed during similar periods of economic uncertainty in 2008 and 2022.

While the situation remains fluid, with the possibility that the proposed tariff rates could be used as a negotiation tool rather than fully implemented, the immediate market reaction has been decidedly negative. Pinterest's sharp decline reflects broader concerns about the potential impact on user spending and advertiser budgets in an increasingly uncertain economic environment. As the market digests this news, investors will be closely watching for any signs of resilience or further vulnerability in Pinterest and its peers in the coming trading sessions.