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.