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Zeta Global - AI Stock Analysis

Analysis generated January 2, 2025

Zeta Global Holdings Corp. (NYSE: ZETA) is a data-powered marketing technology company that operates in the field of software as a service (SaaS). The company leverages artificial intelligence (AI) to manage and analyze large sets of data to help businesses engage with their customers more effectively. With a diverse portfolio of products, Zeta Global aims to offer an integrated approach to customer lifecycle management, helping its clients drive growth through better customer insights and personalized marketing strategies.

Fundamental Analysis

During the last quarter, Zeta Global reported a revenue of $268 million, marking a notable increase of 19.09% from the previous quarter. This solid quarterly growth is further accentuated by a robust year-over-year increase of 44.17%, signaling a strong upward trajectory for the company.

Net income for the last quarter stood at $17 million, reflecting a 38.09% growth compared to the previous quarter. Year-over-year, net income surged by 59.67%, which is a strong indicator of the company's increasing profitability and effective cost management strategies.

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the last quarter came in at $2.6 million, showing an impressive 78.10% increase from the previous quarter. On a year-over-year basis, EBITDA saw an even more substantial rise of 89.99%. This improvement in EBITDA underscores enhanced operational efficiency and the potential for long-term profit growth.

Technical Analysis

Today, Zeta Global's stock price is $17.99, which represents a decrease of 25.07% compared to a month ago. This significant short-term drop is concerning. However, when looking at the longer-term picture, there is an impressive increase of 126.29% compared to a year ago. This sharp contrast indicates a positive long-term trend despite recent market volatility.

The overall trend appears bearish. The 10-day Simple Moving Average (SMA10) currently stands at $18.15, which is slightly lower than the previous SMA10 of $18.22. This downward movement indicates potential further price declines. Additionally, the Relative Strength Index (RSI) is at 74.4, placing the stock in an overbought condition, which may suggest potential downward pressure on the stock price.

Alternative Data Analysis

In terms of job postings and employee sentiment, Zeta Global currently has 145 open positions. This figure has decreased by 5% over the last couple of months, suggesting measures to improve margins or cut costs, which may not be a positive sign for a growth-oriented company.

When examining customer acquisition data, Zeta Global's website has attracted an estimated 260,000 visitors, up by 31% in the last couple of months. This growth in web traffic is a bullish indicator, hinting at a potential increase in customer acquisition.

On social media, Zeta Global has 5,300 followers on Instagram, reflecting a 3% increase in recent months, which signals growing interest. On Twitter, the company has 9,300 followers with stable engagement levels.

Finally, looking at AltIndex's AI score, which combines fundamental, technical, and alternative data analysis, Zeta Global has an AI score of 60, which translates to a hold signal.

Conclusion and Recommendation

In summary, Zeta Global shows promising signs of fundamental growth with substantial revenue and net income increases. The technical indicators are presently bearish and suggest short-term volatility. However, long-term stock price appreciation is favorable. Alternative data presents a mixed picture with increased web traffic but reduced job openings.

Based on a comprehensive analysis of fundamental, technical, and alternative data, Zeta Global presents both opportunities and risks. The company shows strong fundamental growth, but bearish technical signals and recent strategic cost reductions warrant cautious optimism.

Recommendation: Hold

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.