What Happened?
Shares of marketing technology company Zeta Global (NYSE:ZETA) jumped 3.3% in the afternoon session after the company announced record performance for its AI Marketing Cloud platform during the pivotal holiday shopping weekend. From Thanksgiving through Cyber Monday, platform usage surged 153% compared to the previous year, while the company's AI agent activity increased 25 times. The platform also maintained 100% uptime, a critical factor as enterprise brands depended on it to send their most important messages during the peak period. The strong performance highlighted the growing adoption of Zeta's AI, with the company noting that clients who used its AI Agents saved 87% of their time on repetitive tasks. The results also reflected momentum from the recent acquisition of Marigold's enterprise software business.
After the initial pop the shares cooled down to $18.26, up 3.1% from previous close.
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What Is The Market Telling Us
Zeta Global’s shares are extremely volatile and have had 46 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 12 days ago when the stock gained 6% 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 sees 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.
Zeta Global is down 2.6% since the beginning of the year, and at $18.26 per share, it is trading 30.6% below its 52-week high of $26.31 from December 2024. Investors who bought $1,000 worth of Zeta Global’s shares at the IPO in June 2021 would now be looking at an investment worth $2,053.
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