Taboola is trading 29% down at $3.67 after its Q2 2026 earnings report showed revenue below analyst estimates, triggering a sharp sell-off despite improved profitability.
- Management raised full-year guidance for ex-TAC gross profit and adjusted EBITDA, signaling a strategic shift toward higher-margin performance advertising via its Realize platform.
- The significant price drop suggests investors are prioritizing top-line growth concerns and revenue headwinds over the company's improved margins and optimistic outlook.