Pinterest, Inc. (PINS) shares plummeted 5.02% in pre-market trading on Monday, following multiple analyst downgrades and concerns about weaker advertising revenue. The image-sharing platform's stock faced significant pressure as Wall Street experts revised their outlook on the company's near-term performance.

Leading the bearish sentiment, Zephirin Group slashed its price objective for Pinterest by $7 to $25, while Wells Fargo reduced its target price from $47 to $42. Analysts cited underperformance in Pinterest's recent campaign to attract TikTok users and potential advertiser shifts away from the platform. Zephirin Group specifically pointed out that X's image rebranding could drive advertisers away from Pinterest, posing further headwinds for the second quarter. Wells Fargo, on the other hand, noted a softer macroeconomic environment and weaker brand advertising landscape, although they suggested this could be partially offset by intra-quarter foreign exchange tailwinds.

The downgrades come at a crucial time for Pinterest, as the company navigates a challenging digital advertising market. With increased competition from other social media platforms and broader economic uncertainties, Pinterest faces pressure to maintain its user growth and advertising appeal. Despite these setbacks, it's worth noting that 32 out of 41 brokerages still rate the stock as "buy" or higher, indicating some underlying confidence in the company's long-term prospects. As Pinterest heads into its next earnings report, investors will be closely watching for signs of resilience in its advertising business and the effectiveness of its strategies to attract and retain both users and advertisers.