Zeta Global stock soared after the Palantir deal: Is it a good buy today?

Zeta Global stock price jumped on Tuesday after the company intensified its pivot towards artificial intelligence (AI) by partnering with Palantir Technologies. It jumped to $20.50, and then pared back some of those gains to close at $19.50. So, will this partnership boost ZETA shares in the near future?

Zeta Global inks key partnership with Palantir

Zeta Global is a top company in the adtech industry, where it provides the Zeta Marketing Platform (ZMP) that is used by companies and advertising agencies. ZMP analyzes structured and unstructured data points to predict consumer behavior. 

Zeta also offers the Consumer Data Platform (CDP) that ingests, analyzes, and distills data points to generate a single view of a consumer. Some of the top clients include companies like T-Mobile, Renault, Generali, Samsung, and General Mills.

Zeta Global stock jumped after announcing a strategic partnership with Palantir. This deal will help the company build a unified data and AI infrastructure, with Athena by Zeta being at the center.

READ MORE: Zeta Global stock soared after Snowflake OSI entry: what next?

The deal will pair two complementary platforms: Palantir Foundry and Zeta Data Cloud. In this, Zeta Data Cloud will be rearchitected on Foundry, with Athena by Zeta, turning that data into decisions and measurable outcomes. In a statement, Alex Karp, Palantir’s CEO said:

“Palantir and Zeta are using Ontology to create a next-generation marketing environment, giving Zeta all the advantages of AI while protecting against many of the known dangers. Bringing together containerized architecture and AI in the context of marketing will transform this industry.”

Zeta’s growth is continuing

The announcement came at a time when its business is continuing its growth trajectory. Its revenue grew by 50% to $396 million, while its cash from operations soared by 43% to $50 million. This growth accelerated as 9 of the ten verticals it focuses on continued growing.

Most notably, the company boosted its revenue and profitability growth. It now expects that its revenue will grow by 37% this year, while its adjusted EBITDA margin moving to 22.3%. 

The company’s customers continue to boost their spending, which has helped its average revenue per user (ARPU) gain momentum. Also, the management expects that its organic annual revenue will jump to $2.3 billion in 2028 from the estimated $1.78 billion. Its adjusted EBITDA is expected to move to $573 million that year from this year’s $397 million.

There are also signs that the company is not all that overvalued, especially based on the rule-of-40 multiple. Its annual revenue growth this year is expected to be 37%, while its EBITDA margin is expected to be 6%, giving it a multiple of 42%.

Zeta Global stock price technical analysis

Zeta stock chart | Source: TradingView

The daily chart shows that the Zeta share price formed a double-bottom pattern at $14.48 and a neckline at $19.5. This pattern explains why it jumped to a high of $26 on June 2nd.

Most recently, the stock has pulled back as investors booked profits. It has remained above the 200-day Exponential Moving Average (EMA) and the 61.8% Fibonacci Retracement level.

Therefore, the most likely scenario is where it loses momentum after forming a doji candlestick pattern. If this happens, it may move below the 200-day EMA and then rebound later this year.