LendingTree (TREE) shares tumbled 13.16% in pre-market trading on Friday following the release of its first-quarter 2025 earnings report and a target price cut by JP Morgan. The online lending marketplace faced a mixed bag of financial results, coupled with analyst skepticism, leading to a significant sell-off.
The company reported Q1 revenue of $239.7 million, up 42.9% year-over-year but falling short of the Zacks Consensus Estimate of $244.03 million. This 1.77% revenue miss was partially offset by a strong earnings performance, with EPS coming in at $0.99, surpassing the consensus estimate of $0.74 by 33.78%. Despite the overall growth, the company's performance across different segments varied, with Insurance revenue showing robust growth of 70.8% while Consumer and Home segments experienced more modest increases.
Adding to investor concerns, JP Morgan cut its target price for LendingTree from $68 to $60. This downward revision suggests that the investment bank may have concerns about the company's near-term growth prospects or valuation. The combination of mixed earnings results and the analyst's lowered expectations appears to have spooked investors, resulting in the sharp pre-market decline. As the market digests this information, all eyes will be on how LendingTree addresses these challenges and whether it can regain investor confidence in the coming quarters.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.