Shares of Trade Desk (TTD) plunged 5.38% in Friday's pre-market trading session, despite the company reporting better-than-expected third-quarter earnings. The sharp decline comes as several analysts lowered their price targets for the ad-tech firm, citing concerns about valuation and potential slowdown in the technology sector.

Trade Desk reported third-quarter revenue of $739 million, up 18% year-over-year and surpassing the consensus estimate of $719.55 million. The company also delivered adjusted earnings per share of $0.45, significantly beating analyst expectations of $0.20. However, the strong results were overshadowed by a wave of analyst price target reductions.

Multiple firms, including Susquehanna, Needham, Cantor Fitzgerald, and Wells Fargo, cut their price targets for Trade Desk stock. These adjustments reflect growing concerns about the company's valuation amid a broader reassessment of high-growth technology stocks. The downgrades come at a time when investors are increasingly cautious about the tech sector's outlook, given economic uncertainties and the potential for slower growth in digital advertising spending.