AI search engines continue to weigh on social media stocks
Two social media giants, Snap Inc (NYSE:SNAP) and Pinterest Inc (NYSE:PINS), are shifting lower on Wall Street today. SNAP was last seen down 0.7% at $8.69, while PINS drops 0.9% to trade at $32.27, after sector peer Reddit (RDDT) suffered a downgrade from Wells Fargo this morning. Disrupted traffic from Google's artificial intelligence (AI) search engine is the big concern, creating potential long-term headwind for many online sites.
SNAP is headed for its fourth drop in five sessions, though the 20-day moving average appears to be keeping losses in check. The security isn't too far removed from its April 8 six-year low of $7.08, down 19.2% year to date.
PINS is faring better with its near-term performance, up 11% in 2025, but has struggled over the last 12 months. The shares are now contending with the 80-day moving average, a trendline that has moved in as a floor of support over the past week.
Short interest has been climbing on both Snap and Pinterest stock, up 18.1% and 20.7%, within the past two reporting periods, respectively. This accounts for 8.2% and 5.5% of each stock's respective available floats, with just over two days' worth of pent-up buying power on the table for both.