On Wednesday, Zeta Global Holdings Corp (NYSE:ZETA) stock maintained its Buy rating and a price target of $35.00, following the announcement of its acquisition of LiveIntent, a private email marketing platform. The deal, valued at $250 million, is expected to strategically enhance Zeta's offerings in several key areas.
Zeta Global's acquisition of LiveIntent is set to broaden its identity graph, adding 235 million unique email addresses per month. This expansion is seen as a significant stride in growing the company's data capabilities. Additionally, the move into publisher monetization is anticipated to extend Zeta's market reach.
The acquisition is also poised to accelerate Zeta's development in mobile and retail media solutions. LiveIntent's technology, which already powers millions of mobile experiences daily, aligns with Zeta's recently launched mobile solutions, potentially speeding up adoption and effectiveness.
Following the acquisition, Zeta Global plans to unveil a new Publisher Cloud offering. This service will integrate LiveIntent's publisher network, creating a 'walled garden' ecosystem that connects advertisers and publishers on a single platform. This network will include both LiveIntent's and Zeta's publishers, the latter of which encompasses 5 million publishers using Disqus.
LiveIntent's recent foray into the retail media space is also seen as a beneficial move for Zeta. It is expected to further distinguish Zeta's offerings to retailers and brands, enhancing its position in the competitive market landscape. The acquisition highlights Zeta's commitment to expanding its digital marketing and data analytics services.
InvestingPro Insights
Zeta Global Holdings Corp's recent acquisition of LiveIntent aligns well with its strong market performance and growth trajectory. According to InvestingPro data, Zeta has shown impressive revenue growth of 25.16% over the last twelve months as of Q2 2024, with quarterly revenue growth reaching 32.61% in Q2 2024. This robust growth is reflected in the company's stock performance, with a remarkable 263.06% price return over the past year.
InvestingPro Tips highlight that 5 analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for Zeta's financial performance. This optimism is likely fueled by the strategic benefits expected from the LiveIntent acquisition, including expanded data capabilities and market reach.
Despite the company's current unprofitability over the last twelve months, analysts predict that Zeta will become profitable this year. This projection, combined with the company's strong revenue growth and strategic acquisitions, paints a promising picture for Zeta's future in the competitive digital marketing landscape.
For investors seeking more comprehensive insights, InvestingPro offers 15 additional tips for Zeta Global Holdings Corp, providing a deeper understanding of the company's financial health and market position.
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