Pubmatic (NASDAQ:PUBM) Plunges 12.8% as Earnings Concerns Weigh on Mixed Growth

Pubmatic (NASDAQ:PUBM) plunged 12.8077% in pre-market trading on November 13, 2025, amid mixed signals from its recent earnings call and evolving market dynamics. The stock’s sharp decline reflects investor concerns over revenue volatility and operational challenges despite notable growth in key segments.

While Pubmatic reported robust 50% year-over-year growth in CTV revenue and 80% expansion in emerging markets driven by AI solutions, its display revenue fell 5%, and the Americas region faced a 14% revenue drop due to reduced spending from a major DSP client. The company emphasized AI-driven optimizations improving bid response times and reducing auction timeouts, but analysts highlighted risks from a fragmented DSP landscape and muted holiday seasonality in discretionary ad categories. Management reiterated a focus on direct publisher integrations to counteract industry-wide supply path optimization trends.

Backtest assumptions suggest a mixed outlook: A long position triggered by a 5% post-earnings rebound could face resistance at $15.50, while short-term bearish momentum might persist if RSI remains below 30. A short strategy activated at $13.50 with a stop-loss above $15.20 could align with near-term technical indicators, though long-term fundamentals remain tied to CTV and AI adoption rates.

Despite current volatility, Pubmatic’s strategic pivot toward CTV and AI-driven optimization could provide long-term value for shareholders who remain patient. Analysts recommend monitoring key metrics such as bid response time improvements, DSP client diversification, and the rate of publisher integration growth to assess the sustainability of this strategy. The company also plans to release updated guidance by December 15, 2025, which could offer further clarity.