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Zeta Global - AI Stock Analysis

Analysis generated December 25, 2024

Zeta Global is a data-driven marketing technology company that helps brands acquire, grow, and retain customers. Through its platform, Zeta offers a suite of data, advanced analytics, and software solutions designed to create more predictable and actionable return on investment for its clients. The company operates primarily in the marketing technology sector, which has been experiencing significant growth due to the increasing emphasis on data-driven marketing strategies.

Fundamental Analysis

Assessing Zeta Global's recent financial performance reveals a robust trend. The revenue for the last quarter was $268M, marking an increase of 19.09% compared to the previous quarter and a substantial rise of 44.17% compared to the same quarter last year. Such strong quarter-over-quarter and year-over-year growth indicates that the company is scaling its operations effectively.

Net income for the last quarter stood at $17M, which is a notable increase of 38.09% compared to the prior quarter and an impressive jump of 59.67% year-over-year. This sharp increase in net income suggests improved profitability and operational efficiency.

Furthermore, EBITDA for the last quarter reached $2.6M, a significant increase of 78.10% over the previous quarter and a year-over-year rise of 89.99%. The enhanced EBITDA growth signals improved earnings before interest, taxes, depreciation, and amortization, further solidifying the company's financial footing.

Technical Analysis

Examining the recent stock price movements of Zeta Global, the current stock price is $18.74. Although this presents a decrease of 11.89% from a month ago and might be concerning in the short term, it’s crucial to note the long-term perspective. The stock has increased by 108.45% over the last year, indicating a strong upward trajectory.

However, the short-term technical indicators suggest potential caution. The simple moving average (SMA10) is currently at 19.47, down from the previous SMA10 of 19.83, indicating a potential downward trend in the price movement. The RSI (Relative Strength Index) stands at 37.6, which is considered neutral, neither indicating overbought nor oversold conditions.

Alternative Data Analysis

Exploring the alternative data gives more context to Zeta Global's market position. Job postings have been stable, with 147 open positions, reflecting a stable workforce and consistent hiring practices. Employee sentiment is neutral, suggesting a steady organizational environment.

Customer acquisition metrics are also encouraging. Zeta Global's website has garnered approximately 260,000 visitors recently, reflecting a 31% increase over the past few months. This surge indicates potential growth in customer base and market interest. On social media, Zeta Global’s engagement has modestly increased, with a 6% rise in Instagram followers, while Twitter followers remain unchanged at 9,300.

Moreover, Zeta Global’s AI score by AltIndex is 54, indicating a hold signal. This score synthesizes aspects of fundamental, technical, and alternative data analysis, suggesting that the stock is currently balanced and may not present alarming risks or exceptional opportunities in the immediate future.

Conclusion and Recommendation

In conclusion, Zeta Global showcases strong financial performance with significant revenue and profit growth. While short-term technical indicators suggest possible caution, the long-term trends are positive. Alternative data supports a stable and potentially growing customer base, indicating the company’s solid market position. Given these points, a hold recommendation would be reasonable, as the stock presents balanced near-term risks and opportunities with potential for future growth.

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.