LendingTree (TREE) shares experienced a significant plunge of 22.66% in Friday's pre-market trading session, following the release of its first-quarter 2025 earnings report and a target price reduction by JP Morgan. The online lending marketplace faced a combination of mixed financial results and analyst skepticism, leading to a substantial sell-off.

The company's Q1 2025 financial results painted a mixed picture. LendingTree reported revenue of $239.7 million, representing a 42.9% year-over-year increase. However, this figure fell short of the Zacks Consensus Estimate of $244.03 million, missing by 1.77%. On a positive note, the company's earnings per share (EPS) came in at $0.99, surpassing the consensus estimate of $0.74 by an impressive 33.78%. The 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 reservations about the company's near-term growth prospects or valuation. The combination of mixed earnings results and lowered analyst expectations appears to have significantly impacted investor sentiment, 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.