From Acquisition Mistakes to AI Disruption: Why TechTarget (TTGT) Became a Short Target

Prosper Stars & Stripes, a long/short equity fund, released its second-quarter 2026 investor letter. In Q2 2026, the fund delivered a strong net return of +30.1%, outperforming the Russell 2000 Index's +21.5% and the HFRX Equity Hedge Index's +10.3%. TechTarget, Inc. (NASDAQ:TTGT) was the largest contributor to the fund's short book, with the company monetizing the purchase research behavior of enterprise IT buyers.

Prosper Stars & Stripes had previously shorted TechTarget after it completed a value-destroying acquisition in December 2024, leading to significant impairment charges in Q1 2025 and Q1 2026. The company's management described its market as mature, with 2% to 3% top-line growth, and EBITDA margins that fell to 7% in Q1 2026. Despite the slowdown in revenue growth before ChatGPT's launch in November 2022, Prosper Stars & Stripes remains short TechTarget, believing generative AI will weigh on the company's prospects.