The new year is nearly upon us, and it promises to bring many changes. Investors and portfolio managers are positioning themselves going forward, and they likely are taking another look at tech stocks. Investing in the sector remains popular, as it has driven the bull market, due to enthusiasm about artificial intelligence (AI). But there is more to the sector than AI.
24/7 Wall St. Key Points:
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Where should investors seeking opportunities in tech for 2025 be looking now?
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Wall Street is particularly optimistic about Zeta Global Holdings Corp. (NYSE: ZETA).
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Where should investors seeking opportunities in the sector be looking now? Let’s start with some of the tech stocks for which analysts have big expectations.
| Stock | Mean Target | Upside |
| Alit Inc. (NYSE: ALIT) | $11.00 | 62.2% |
| AST SpaceMobile Inc. (NASDAQ: ASTS) | $35.94 | 57.3% |
| Nextracker Inc. (NASDAQ: NXT) | $53.37 | 47.5% |
| PagSeguro Digital Ltd. (NYSE: PAGS) | $11.59 | 84.5% |
| StoneCo Ltd. (NASDAQ: STNE) | $14.16 | 77.6% |
| Sunrun Inc. (NASDAQ: RUN) | $18.88 | 91.7% |
| Wolfspeed Inc. (NYSE: WOLF) | $13.95 | 88.5% |
| Zeta Global Holdings Corp. (NYSE: ZETA) | $37.77 | 99.8% |
Topping that list is Zeta, operator of an AI-powered marketing cloud platform. Analysts anticipate its share price will virtually double. Does that mean the stock is undervalued? Or is this a case of one overzealous analyst?
Why Invest in Zeta?
Despite pulling back recently, Zeta stock is about 208% higher than its 2021 IPO share price. The company claims to empower enterprises to make smarter business decisions by combining proprietary AI, data, and multiple point solutions together into a single platform. Customers include Barclays, CNN, eBay, and Jaguar. It was recognized as one of the best places to work in 2024 and was named Snowflake Market Partner of the Year in 2023.
Shares reached an all-time high of over $38 per share following the most recent quarterly report. The stock then tumbled after a critical short-sellers report and subsequent lawsuit. The CEO and other officers showed their support by acquiring shares at a bargain. Investors now have to decide how much credence to give to accusations that the company misled investors.
The Company
The company operates an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software in the United States and internationally.
Its Zeta Marketing Platform analyzes billions of structured and unstructured data points to predict consumer intent by leveraging sophisticated machine learning algorithms and the industry’s opted-in data set for omnichannel marketing. Its Consumer Data platform ingests, analyzes, and distills disparate data points to generate a single view of a consumer, encompassing identity, profile characteristics, behaviors, and purchase intent.
The company also offers various types of product suites, such as agile intelligence suite, which synthesizes its data and data generated by its customers to uncover consumer insights that are translated into marketing programs. CDP helps in consolidating multiple databases and internal and external data feeds and organizing data based on needs and performance metrics.
Zeta’s headquarters are in New York City. The company was incorporated in 2007, and it went public in June of 2021. It competes with or is similar to the likes of:
- Oracle Corp. (NYSE: ORCL)
- Salesforce Inc. (NYSE: CRM)
- SAP S.E. (NYSE: SAP)
The company recently announced a surge in platform engagement and said it anticipated strong holiday season demand. It announced a $100 million stock repurchase program in the wake of its latest quarterly report. Back in October, Zeta acquired marketing tech company LiveIntent for $250 million. Earlier in the year, it completed debt refinancing and partnered with Yahoo.
The Stock
Shares tried to stage a rebound in early December but retreated again. The stock is still over 108% higher than a year ago, far outperforming the broader markets. Note that the consensus price target is less than the all-time high of $38.20, but both are greater than the recent share price of less than $19.
Of 15 analysts following the stock, 11 recommend buying shares, three of them with Strong Buy ratings. Needham and RBC Capital recently reiterated Buy-equivalent ratings, but Goldman Sachs initiated coverage with a Neutral rating. Institutions hold more than 75% of the shares. Vanguard is a beneficial owner, and BlackRock also has a notable stake. Note that around 17 million shares, or more than 9% of the float, are held short.
While Wall Street expectations for where the stock goes in the next 52 weeks vary, none of these analysts anticipate downside. The highest price target indicates a huge gain in the share price. The consensus projection signals big upside as well, suggesting that it’s probably not just one overenthusiastic analyst.
| Low target | $26.00 | 41.5% |
| Mean target | $37.77 | 105.6% |
| High target | $45.00 | 144.9% |
Despite the overhang of fraud accusations, analysts remain optimistic. Moreover, uncertainty about the economy in the new year suggests consumer spending could feasibly shrink further. If so, marketers and advertisers will need the services offered by Zeta even more.
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