What Happened?
Shares of marketing technology company Zeta Global (NYSE: ZETA) fell 3.1% in the morning session after a broader market downturn weighed on technology stocks, sparked by concerns that the rally in artificial intelligence (AI) related shares was losing steam.
Wall Street suffered sharp early losses, reinforcing the high bar investors had set for success in the tech sector. The negative sentiment was highlighted by the performance of data analytics firm Palantir, which saw its stock dip despite posting solid results and guidance. This reaction appeared to stoke fears that the AI rally could be fading, which put pressure on related technology stocks.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Zeta Global? Access our full analysis report here.
What Is The Market Telling Us
Zeta Global’s shares are extremely volatile and have had 52 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 5.1% on the news that the company's stock rallied amid a broader surge in technology and artificial intelligence stocks, fueled by strong earnings from a major tech giant. The positive momentum in the tech sector came after Amazon reported impressive third-quarter results. The company's cloud computing division, Amazon Web Services, saw a 20% surge in sales, driven by high demand for artificial intelligence capabilities. This news lifted investor confidence across the AI space. Zeta Global, which operates a data-driven cloud platform using AI to help companies with personalized marketing, benefited from this widespread optimism. The company's focus on leveraging machine learning to interpret consumer data positioned it to ride the wave of positive sentiment surrounding AI technologies.
Zeta Global is down 9% since the beginning of the year, and at $17.04 per share, it is trading 53.6% below its 52-week high of $36.74 from November 2024. Investors who bought $1,000 worth of Zeta Global’s shares at the IPO in June 2021 would now be looking at an investment worth $1,918.
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