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

We came across a bullish thesis on Zeta Global Holdings Corp. on Business Invest’s Substack by Francesco Ferrari. In this article, we will summarize the bulls’ thesis on ZETA. Zeta Global Holdings Corp.'s share was trading at $18.68 as of September 4^th. ZETA’s forward P/E was 22.08 according to Yahoo Finance.

Zeta Global Holdings (ZETA) has emerged as a debated player in the marketing technology space, positioning itself as an all-in-one software platform for data-driven customer engagement. Its core strength lies in enabling brands to deliver highly targeted advertising campaigns, driving superior efficiency compared to traditional broad-based marketing approaches. The company’s solutions are designed to maximize customer acquisition and retention by leveraging advanced data analytics, making it a compelling option for enterprises seeking measurable marketing outcomes.

From a financial standpoint, Zeta’s growth trajectory has been noteworthy, with a three-year revenue CAGR of 31.1%, reflecting strong demand for its platform and execution capabilities. However, a reverse discounted cash flow analysis highlights the ambitious expectations embedded in its valuation. To justify current market assumptions, Zeta would need to sustain a revenue CAGR of approximately 25.8% over the coming years, implying the company must more than triple its size in under five years. While not impossible given its track record, such growth remains an aggressive target in absolute terms and requires flawless execution in a competitive industry landscape dominated by larger players.

ZETA sits below the author’s previously set price alert of $21.9, Zeta trades at levels that may reflect skepticism around achieving these lofty goals. For investors, the opportunity lies in whether the company can continue scaling profitably while proving that its data-driven marketing model offers a sustainable edge. Caution is warranted, but the risk/reward profile could appeal to those confident in Zeta’s execution and market potential.

Previously we covered a bullish thesis on Zeta Global Holdings Corp. by jasmichelle7 in January 2025, which highlighted resilience after a short report, insider buying, strong ARR, and a differentiated first-party data network. The company’s stock price has traded flat since our coverage. The thesis still stands as Zeta expands in high-growth verticals. Francesco Ferrari shares a similar but emphasizes on valuation risks from ambitious growth assumptions.

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.