Why Zeta Global (ZETA) Stock Is Falling Today

What Happened?

Shares of marketing technology company Zeta Global (NYSE:ZETA) fell 3.2% in the morning session after the stock pulled back amid a broader market decline, likely as investors took profits following a strong multi-day rally. 

The decline followed a six-day gaining streak for the stock, which had jumped over 15% in the previous week. This significant run-up made a pullback more likely as some investors decided to lock in their gains. Adding to the pressure, the wider market also trended lower, with major indexes like the S&P 500 and the tech-heavy Nasdaq both falling during the session. With no negative company-specific news reported, the drop appeared to be a technical correction in a weaker overall market.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Zeta Global? Access our full analysis report here.

What Is The Market Telling Us

Zeta Global’s shares are extremely volatile and have had 43 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 dropped 4.1% on the news that concerns grew over lofty valuations and the uncertain profitability of artificial intelligence investments. 

The sell-off, which dragged Wall Street toward a fourth consecutive day of losses, was fueled by investor apprehension about whether the high prices of AI stocks were justified. Questions mounted about how quickly the massive investments in AI will translate into substantial profits. A recent UBS survey highlighted these concerns, finding that only 17% of large businesses were using AI projects at scale. This data hinted that expected revenue growth from AI products might be more subdued than previously anticipated, prompting a broad reevaluation of the sector. 

Adding to the concern, reports revealed that a critical $10 billion funding deal between cloud giant Oracle and Blue Owl Capital for a Michigan data center stalled. While Oracle disputed the narrative, claiming they selected a different equity partner, the reported reason for Blue Owl's exit sparked widespread anxiety: concerns over Oracle's ballooning debt and "unfavorable" terms. As a result, investors grew increasingly concerned that hyperscalers were relying more on risky private equity structures to build infrastructure rather than using their own capital.

Zeta Global is up 5.2% since the beginning of the year, but at $19.71 per share, it is still trading 20.2% below its 52-week high of $24.69 from February 2025. 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 $2,217.

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