Zeta Global Holdings recently launched its AI Agent Studio and Agentic Workflows, showcasing its commitment to AI-driven marketing solutions. Despite these advancements, the company's shares fell 12% last week amid mixed market conditions. While the broader technology sector faced challenges with tech stocks generally losing value, including key losses in Nvidia and other semiconductor stocks, Zeta's innovative announcements might have softened the impact. Overall, the market's general volatility, coupled with sector-specific downturns, likely contributed to Zeta's share price decline, aligning with the Dow Jones drop and technology sector turbulence.

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Over the past three years, Zeta Global Holdings' total shareholder return, including share price and dividends, marked a 1.05% decline. Compared to the past year's performance, where Zeta underperformed both the US Software industry and the broader US Market, this longer-term perspective highlights the company's recent challenges amid wider market fluctuations.

The AI innovations showcased in Zeta's new product launches could potentially drive future revenue and earnings. These advancements align with the company's revenue guidance for 2025, projecting 1.24 to 1.25 billion US$ in sales, a considerable increase. If the AI tools gain traction, they may bolster Zeta's competitive edge and enhance its financial outlook.

Despite a recent share price drop, Zeta's stock trades significantly below analysts' consensus price target of 31.15 US$, suggesting a perception of potential undervaluation in the market. This price movement and the projected earnings growth, expected to turn positive in the next three years, might influence investor sentiment as the company continues its innovation trajectory in the AI-driven marketing solutions domain.

Our expertly prepared valuation report Zeta Global Holdings implies its share price may be lower than expected.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:ZETA.

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