Shares of Nexxen International (NEXN) plunged 5% in Friday's pre-market trading session, as investors reacted to significantly lowered earnings expectations ahead of the company's upcoming second-quarter results. The Tel Aviv-based digital advertising technology company is scheduled to report its earnings on May 19, 2025, for the quarter ending June 30, 2025.

According to the latest LSEG data, analysts now expect Nexxen to report earnings of 17 cents per share, a notable decrease from previous quarters. More alarmingly, the mean earnings estimate has plummeted by 51.8% over the past three months, signaling growing concerns about the company's near-term financial performance.

Despite the sharp downward revision in earnings expectations, Wall Street maintains an overall bullish stance on Nexxen International. The current analyst consensus remains a "buy," with 8 out of 8 analysts recommending either a "strong buy" or "buy." The median 12-month price target stands at $15.00, representing a significant premium to the stock's last closing price of $11.60. However, today's stock plunge suggests that investors are increasingly skeptical about the company's ability to meet these optimistic projections in the face of deteriorating earnings outlook.