Shares of Magnite, Inc. (MGNI) plummeted 14.65% in early trading on Thursday, following a significant price target cut by B. Riley despite the company's strong third-quarter performance. The sell-off intensified from the pre-market decline, as investors continued to digest the latest analyst action and reassess the company's valuation.

B. Riley, a notable financial services firm, reduced its price target for Magnite from $28.5 to $25 early Thursday. This adjustment appears to have sparked serious concerns among investors, leading to the sharp decline. The reasons behind B. Riley's decision to lower the target price were not immediately clear, especially in light of Magnite's positive Q3 results reported earlier this week.

Interestingly, Magnite had recently reported robust third-quarter earnings. In a conference call transcript published on Wednesday, CEO Michael Barrett highlighted that the company exceeded total top-line expectations, with Connected TV (CTV) contribution ex-TAC growing 18% and 25% when excluding political advertising. The company also reported strong performance in its DV+ segment and an impressive adjusted EBITDA of $57 million, resulting in a 34% margin. Despite these encouraging figures, the market seems to be focusing heavily on the lowered price target, leading to today's significant sell-off.