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Zeta Global - AI Stock Analysis

Analysis generated November 14, 2024

Zeta Global Holdings Corp. is a data-driven marketing technology company that aims to help enterprises acquire, retain, and grow customer relationships. Leveraging proprietary data sets and artificial intelligence, Zeta Global offers a comprehensive suite of engagement services through its cloud-based SaaS platform. The firm targets a diverse array of industry verticals, including retail, financial services, hospitality, and healthcare, assisting its clients in driving meaningful customer interactions and generating measurable business outcomes.

Fundamental Analysis

Fundamentally, Zeta Global showcases a solid growth trajectory. In the last quarter, the company reported revenue of $268 million. This figure marks a 19.09% increase from the previous quarter and a significant 44.17% increase compared to the same quarter last year. The rising revenue indicates that Zeta Global is successfully expanding its market presence and client base.

The net income for the last quarter was $17 million, up by 38.09% from the preceding quarter and demonstrating a remarkable annual increase of 59.67%. These numbers highlight efficient cost management and increasingly profitable operations.

Additionally, Zeta Global reported an EBITDA of $2.6 million for the last quarter. This figure represents a staggering 78.10% growth quarter-over-quarter and an 89.99% surge year-over-year. Positive EBITDA growth emphasizes healthy cash flow and operational efficiency, which is crucial for sustaining long-term growth.

Technical Analysis

The current stock price of $16.95 reflects a substantial decrease of 45.43% from a month ago, which might raise short-term concerns. However, when compared to a year ago, the stock price has increased by a robust 94.83%, indicating a positive long-term trend and investor confidence.

The trend appears bearish, with a current simple moving average over the last 10-day period (SMA10) at 30.15, compared to the previous SMA10 of 31.20. This decrease suggests potential downward pressure on the stock in the short term. However, the Relative Strength Index (RSI) stands at 27.9, indicating that the stock may be oversold and could be poised for a bullish rebound.

Alternative Data Analysis

Examining alternative data, Zeta Global has listed 143 open positions across popular job boards, a 5% increase over the past couple of months. This hiring activity suggests that the company is in a growth phase and expanding its workforce to support future operations.

The company also boasts an estimated 190,000 website visitors, a significant 64% increase recently. Increased web traffic can often translate to higher customer acquisition and engagement, underpinning future revenue growth.

Social media engagement metrics show mixed signals. On Instagram, Zeta Global has 5,300 followers, with a 7% increase in the past couple of months, indicating heightened interest from potential customers or partners. On Twitter, Zeta Global maintains 9,100 followers, unchanged over the same period, signaling potential stagnation in that platform’s user engagement.

Lastly, Zeta Global’s AltIndex AI score is 53, which categorizes the stock in a "hold" position. This score is derived from a composite analysis of the company's financial, technical, and alternative data metrics, giving a balanced view of its performance.

Conclusion and Recommendation

In conclusion, Zeta Global demonstrates strong fundamental performance marked by significant revenue and profit growth. While the short-term technical indicators show a bearish trend, the long-term upward trajectory and low RSI suggest a potential rebound. The positive alternative data, including increased job postings and web traffic, reinforce the outlook for sustained growth.

Based on the analysis, Zeta Global appears to be a promising investment, especially for long-term investors. The fundamentals are robust, and the alternative data suggests that the company is well-positioned for growth. Given the current market conditions and mixed technical signals, a "hold" recommendation aligns with a cautious optimism for this stock.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.