Zeta Global Holdings Corp. (ZETA): A Bull Case Theory

We came across a bullish thesis on Zeta Global Holdings Corp. on Investment Ideas by Antonio’s Substack by Antonio Linares. In this article, we will summarize the bulls’ thesis on ZETA. Zeta Global Holdings Corp.'s share was trading at $15.56 as of July 30^th. ZETA’s forward P/E was 25.13 and according to Yahoo Finance.

Zeta Global’s core competitive advantage stems from its unique architecture, where AI is native to the application layer, enabling faster, real-time decision-making and superior user experiences—similar to CrowdStrike’s lightweight agent advantage in cybersecurity. This infrastructure allows Zeta to process data with low latency, delivering better ROI to clients and positioning it as a vertical ontology player that automates marketing much like CrowdStrike automates security.

Although Zeta’s free cash flow per share has grown at a slower pace than CrowdStrike’s, its resilience during downturns in 2020 and 2022 is notable, reflecting the strength of its rearchitected platform launched in 2021. Gross margins have expanded meaningfully, and the company has beaten and raised guidance for 15 consecutive quarters.

Zeta now counts 44% of the Fortune 500 as customers, including major names like United Airlines and Samsung, and has seen a sharp increase in “Scaled Customers,” suggesting growing traction and validation of its platform. Zeta’s long-term vision is to become a “Singularity Scaler”—a digital twin of every advertising channel—by creating a unique ID-based data cloud that locks in clients through exclusive activation pathways.

However, this promising trajectory is clouded by short-seller allegations of inflated revenues via “consent farms” and concerns about CEO David Steinberg’s controversial past with InPhonic, which ended in bankruptcy. While these concerns warrant caution, Zeta’s compelling operational performance and differentiated technology continue to warrant close observation. Valued at just over 2x sales and with a modest net cash position, Zeta could become an attractive opportunity—pending validation from a marquee, trusted customer.

Previously, we covered a bullish thesis on Zeta Global Holdings Corp. (NYSE:ZETA) by jasmichelle7 in January 2025, which highlighted its strong first-party data network and post-allegation rebound potential. The stock has depreciated ~17% since. The thesis still stands as fundamentals remain strong. Antonio Linares shares a similar view but emphasizes Zeta’s AI-native architecture as its core advantage.

Zeta Global Holdings Corp. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held ZETA at the end of the first quarter which was 39 in the previous quarter. While we acknowledge the potential of ZETA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.