Shares of Confluent, Inc. (CFLT) tumbled 5.05% in Wednesday's trading session, as investors brace for the company's first-quarter earnings report scheduled for after the market close. The significant drop comes as Wall Street analysts anticipate earnings per share of $0.07 for the quarter.

The cloud-based data streaming platform provider is set to release its financial results for Q1 2025 later today. Analysts' expectations of $0.07 EPS suggest the company may have achieved profitability, which could be a key focus for investors examining the report.

The sharp decline in Confluent's stock price ahead of the earnings announcement may indicate investor nervousness about the upcoming results. Market participants could be positioning themselves cautiously in case of any potential disappointments or concerns about future guidance. Additionally, broader market conditions or sector-specific trends in the technology industry may be contributing to the downward pressure on the stock.

As Confluent prepares to unveil its Q1 performance, investors will likely be watching closely for indicators of the company's growth trajectory, customer acquisition metrics, and any commentary on the competitive landscape in the data streaming market. The after-hours reaction to the earnings report could provide further insight into market sentiment surrounding Confluent's business prospects.