PubMatic (NASDAQ: PUBM), a prominent sell-side advertising technology company, experienced a dramatic premarket decline of over 30% in its share price following a crucial announcement. Despite reporting a profitable second quarter, the company issued a revised full-year revenue forecast that fell significantly short of Wall Street's expectations. This stark divergence
Shares of programmatic advertising platform Pubmatic (NASDAQ: PUBM)
fell 20.9% in the afternoon session after its weak third-quarter forecast overshadowed strong second-quarter earnings. The programmatic advertising company reported second-quarter revenue of $71.1 million and adjusted earnings per share of $0.05, beating analyst expectations. However, investors focused on the bleak outlook for the upcoming quarter. PubMatic guided for third-quarter revenue of $63.5 million at the midpoint, well below the consensus estimate of $71.18 million. Similarly, its third-quarter EBITDA guidance of $8.5 million fell significantly short of the $14.6 million analysts had projected. The weak guidance immediately soured investor sentiment, sending the stock down 22.7% in the aftermath of the announcement.
In a striking paradox that has sent shockwaves through the financial markets, shares of ad tech firm PubMatic (NASDAQ: PUBM) and chemical giant Celanese (NYSE: CE) have experienced significant plunges. This downturn comes despite both companies reporting second-quarter earnings that surpassed analyst expectations, highlighting a critical market sentiment: future outlook
Programmatic advertising platform Pubmatic (NASDAQ: PUBM) reported Q2 CY2025 results exceeding the market’s revenue expectations, with sales up 5.7% year on year to $71.1 million. On the other hand, next quarter’s revenue guidance of $63.5 million was less impressive, coming in 10.8% below analysts’ estimates. Its non-GAAP profit of $0.05 per share was significantly above analysts’ consensus estimates.
Let's have a look at what is happening on the US markets before the opening bell on Tuesday. Below you can find the top gainers and losers in today's pre-market session.
Programmatic advertising platform Pubmatic (NASDAQ: PUBM) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 5.7% year on year to $71.1 million. On the other hand, next quarter’s revenue guidance of $63.5 million was less impressive, coming in 10.8% below analysts’ estimates. Its non-GAAP profit of $0.05 per share was significantly above analysts’ consensus estimates.
As the regular session of the US market on Monday comes to an end, let's delve into the after-hours session and discover the top gainers and losers shaping the post-market sentiment.
A number of stocks jumped in the morning session after the Software as a Service (SaaS) sector rebounded following the sell-off in the previous trading session as a weaker-than-expected U.S. jobs report increased the probability of a Federal Reserve interest rate cut. The July Nonfarm Payrolls (NFP) report showed the U.S. economy added only 73,000 jobs, significantly below the 110,000 forecast. This, combined with downward revisions for May and June, signaled a cooling labor market to investors. In response, market expectations for a September interest rate cut by the Federal Reserve surged from roughly 40% to over 80%. A potential rate cut is generally favorable for growth sectors like technology and SaaS, as lower rates can increase the present value of their future earnings, boosting stock valuations.
Small-cap stocks in the Russell 2000 (^RUT) can be a goldmine for investors looking beyond the usual large-cap names.
But with less stability and fewer resources than their bigger counterparts, these companies face steeper challenges in scaling their businesses.
A number of stocks fell in the afternoon session after the White House announced a new round of steep global tariffs, sparking concerns of a trade war and its impact on the U.S. and global economies. This move creates significant uncertainty for businesses and investors. The new tariffs, with rates of up to 41% on imports from 68 countries and the European Union, prompted a broad market sell-off, with the tech-heavy Nasdaq index showing notable weakness. Adding to the bearish sentiment was a weaker-than-expected July jobs report, which revealed that employers created only 73,000 jobs, far below economists' expectations. This combination of trade fears and signs of a slowing labor market has created a "risk-off" environment, leading investors to pull back from growth-oriented sectors like software and technology.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
