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Zeta (ZETA) Stock Is Up, What You Need To Know

ZETA Cover Image

What Happened?

Shares of advertising and marketing company Zeta Global (NYSE: ZETA) jumped 3.6% in the afternoon session after an analyst at DA Davidson reiterated a "Buy" rating and a $25 price target on the marketing technology company's stock. The firm noted a "better than feared macro backdrop" and pointed to Zeta's history of conservative guidance, suggesting the company could be positioned for its 16th consecutive quarter of beating expectations. Analysts at DA Davidson highlighted potential growth drivers for the quarter, including increased contributions from agencies and higher average revenue per user (ARPU) from existing customers. The report characterized Zeta Global as an "undervalued disrupter" in its sector. This positive commentary followed a strong recent performance for the stock and came ahead of the company's second-quarter earnings release, which was scheduled for July 30th.

After the initial pop the shares cooled down to $16.16, up 3.4% from previous close.

Is now the time to buy Zeta? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Zeta’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 2 days ago when the stock gained 3.2% as investors anticipated a heavy week of corporate earnings. There was no specific news released by the AI-powered marketing technology company to account for the move. Instead, the stock seemed to be benefiting from positive sentiment in the wider market, as U.S. stock futures pointed to a higher open. This followed a period of renewed investor interest in AI-related technology stocks. 

Also, investors were expecting a heavy slate of earnings reports from major companies during the week. Notably, the earnings season got off to a strong start: More than 85% of the S&P 500 stocks that reported earnings exceeded expectations, according to FactSet data. This robust performance fueled positive sentiment, suggesting that corporate profitability remained resilient despite ongoing economic uncertainties.

Zeta is down 13.8% since the beginning of the year, and at $16.16 per share, it is trading 56% below its 52-week high of $36.74 from November 2024. Investors who bought $1,000 worth of Zeta’s shares at the IPO in June 2021 would now be looking at an investment worth $1,817.

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