What Happened?
Shares of go-to-market intelligence provider ZoomInfo (NASDAQ: GTM) jumped 5.8% in the afternoon session after BTIG initiated coverage on the company with a 'Buy' rating and a $13 price target.
The research firm cited several reasons for its bullish outlook, including accelerating growth and de-risked consensus estimates. BTIG also highlighted the success of ZoomInfo's AI product cycle. This cycle helped the company secure its largest-ever total contract value deal in the prior quarter, an agreement worth nearly eight figures in annual value, all while managing to reduce its employee headcount.
After the initial pop the shares cooled down to $10.33, up 3.8% from previous close.
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What Is The Market Telling Us
ZoomInfo’s shares are very volatile and have had 22 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 26 days ago when the stock gained 4.8% on the news that comments from a key Federal Reserve official bolstered hopes for an interest rate cut.
The positive sentiment followed comments from New York Federal Reserve President John Williams, a voting member of the rate-setting Federal Open Market Committee (FOMC), who indicated he saw room for further policy easing. Following his remarks, the probability of a December rate cut surged from 39% to 71%, according to the CME FedWatch Tool, causing Treasury yields to fall. Lower interest rates can be particularly beneficial for growth-oriented sectors like software, as they increase the present value of future earnings. This renewed hope provided a boost to the sector, which had recently faced pressure from concerns over high valuations in artificial intelligence.
ZoomInfo is down 1.3% since the beginning of the year, and at $10.33 per share, it is trading 15.4% below its 52-week high of $12.20 from September 2025. Investors who bought $1,000 worth of ZoomInfo’s shares 5 years ago would now be looking at an investment worth $237.90.
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