Magnite, Inc. (MGNI) shares tumbled 5.26% in pre-market trading on Thursday, following a target price cut by B. Riley despite the company reporting strong third-quarter results. The stock's decline comes as investors reassess the company's valuation in light of the lowered price target.

B. Riley, a notable financial services firm, reduced its target price for Magnite from $28.5 to $25, signaling a more conservative outlook on the stock. This adjustment appears to have overshadowed the positive news from Magnite's Q3 2025 earnings conference call, where the company reported exceeding top-line expectations with Connected TV (CTV) contribution ex-TAC growing 18% and 25% excluding political advertising.

During the earnings call, Magnite's CEO Michael Barrett highlighted strong performance across key areas, including growth from large publisher partners, significant traction with agency marketplaces, and positive momentum in CTV. The company also reported a robust adjusted EBITDA of $57 million, resulting in a 34% margin. However, despite these encouraging results, the market seems to be reacting more strongly to the lowered price target, leading to the pre-market sell-off.