What happened

Shares of Pinterest (PINS -1.15%) are falling today, down 5.6% as of 11:07 a.m. EDT, after being caught up the broader market's slide on fears of a growing wave of coronavirus infections in the U.S. and Europe. There was no company-specific news out on the stock, but investors may also be getting jittery anticipating its third-quarter earnings report, which is due out after the market closes today.

So what

The sell-off in U.S. stocks follows a sharp decline in Europe, where the Stoxx 50, Europe's best-known blue-chip index, was down 4% in afternoon trading. Cases continue to spike on the continent and a number of companies are taking incremental steps toward another lockdown. France implemented a 9 p.m. curfew in much of the country, and in Germany, Chancellor Angela Merkel is considering closing all bars and restaurants for the month of November.

A woman looking at a Pinterest board on her tablet

Image source: Pinterest.

The bulk of Pinterest's revenue comes from the U.S., but Europe holds considerable potential for the company, as that market has been a major contributor for digital ad giants like Google and Facebook

The situation in the U.S. is not much better, however, as coronavirus cases are now at record highs, though there is not yet much discussion of another of round of lockdowns.

As a social media platform, Pinterest should be able to weather another round of lockdowns. Its user base swelled in the spring, though advertising growth slowed nearly to a halt in the second quarter. Still, the threat of severe outbreaks over the winter seems to have investors second-guessing the lofty valuations of tech stocks like Pinterest and the market in general.

Now what

Pinterest will report third-quarter earnings after the bell today, and analysts' expectations are in line with the growth stock's guidance from its second-quarter report, which called for revenue to increase "in the mid-30% range." The Street consensus is for revenue to rise 35% to $377.8 million, and for earnings per share to double from $0.01 to $0.02. Still, there are a number of signs that Pinterest could top those expectations, including that revenue growth was around 50% in July with the help of the Facebook boycott.

Keep your eye on the stock tomorrow, as it's likely to be another volatile day for Pinterest shares.