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Zeta Global Holdings Corp. ZETA stock has shown remarkable growth in the year-to-date period. The stock has skyrocketed 146.4%, outperforming the industry's 57.4% rally and the Zacks S&P 500 composite's 30.3% growth.
ZETA’s performance is significantly higher than that of its competitors, Freshworks Inc. FRSH and Temenos AG TMSNY. In the year-to-date period, FRSH and TMSNY have declined 28.1% and 17.5%, respectively.
YTD Price Performance
Image Source: Zacks Investment Research
As of the last trading session, the stock closed at $21.7, 43.2% down from the 52-week high of $38.2.
Given the rise in the ZETA stock, investors might be appealed to buy it. However, the prevailing question is whether it is the correct time to buy the stock. Let us find out.
Omnicom’s IPG Buyout Creates Opportunity for ZETA
Zeta Global is a marketing technology company that specializes in AI-powered marketing solutions. The company offers tools and platforms to companies like Omnicom and Interpublic to enhance their marketing plans. OMC and IPG are ZETA’s partners, and the company’s offerings complement the offerings of these traditional advertising and marketing agencies.
On Monday, Omnicom announced the acquisition of Interpublic. This deal is anticipated to close in the second half of 2025. Given the services provided by Zeta’s platform and the existing partnership with Omnicom and Interpublic, we expect this acquisition to lead to more business opportunities for ZETA. One reason that can benefit ZETA is the huge data infrastructure of the combined Omnicom-Interpublic company. Zeta Global, using its advanced AI tools, can leverage this data to provide more exact customer insights. This could lead to more effective marketing campaigns and enhanced customer experiences.
Another factor that could assist Zeta Global is the financial strength of the combined company. It can pave a path to rising scale and buying power. Furthermore, it could help the company to access a larger pool of customers and resources since the combined company could leverage its robust financial position to increase its investments in technology and AI.
LiveIntent Buyout to Boost Zeta Global’s Performance
Zeta Global acquired LiveIntent in October for $250 million, of which $77.5 million was paid in cash and the rest in stock. This buyout is anticipated to augment ZETA’s financial performance this year, with expected revenues of $76 million and adjusted EBITDA of $15.5 million.
Apart from the financial gains, the acquisition will enhance Zeta Global’s resolution capabilities due to LiveIntent’s more than 235 million unique hashed email addresses per month. The acquired company can be enough for Zeta Global to capitalize on the combined Omnicom-Interpublic company, as it could lead to more precise targeting and bespoke marketing campaigns.