Zeta Global Rises After Palantir Partnership

Zeta Global shares jumped Tuesday to an intraday high of $20.50 before closing at $19.50 after the company announced a strategic partnership with Palantir Technologies.

Under the agreement, Zeta Data Cloud will be rearchitected on Palantir’s Foundry platform. Foundry will provide the unified data infrastructure while Athena by Zeta will handle data-driven decisioning and measurable campaign outcomes, the companies said.

Palantir CEO Alex Karp commented: “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 offers the Zeta Marketing Platform (ZMP), which analyzes structured and unstructured data to predict consumer behavior, and a Consumer Data Platform that creates a single view of a consumer. Clients include T-Mobile, Renault, Generali, Samsung and General Mills.

The company reported revenue of $396 million, up 50% year over year, and cash from operations of $50 million, up 43%. Zeta said nine of its ten verticals posted growth.

Zeta expects revenue to rise about 37% this year and projects organic annual revenue of roughly $2.3 billion by 2028, compared with an estimated $1.78 billion this year. The company forecasts adjusted EBITDA of about $573 million in 2028 versus roughly $397 million this year.

Based on Zeta’s forecast, 37% revenue growth and an EBITDA margin near 6% combine to about 43 on the rule-of-40 metric used to assess software and platform businesses.

On technical charts, the stock formed a double-bottom at $14.48 with a neckline around $19.50 earlier in the year and reached an intraday high of $26 on June 2. After the recent spike the price pulled back but remained above the 200-day exponential moving average and the 61.8% Fibonacci retracement level. A doji candlestick pattern appeared recently on daily charts.

The agreement requires rearchitecture of Zeta Data Cloud on Foundry and integration of Athena by Zeta into Palantir’s stack, with the companies identifying measurable campaign outcomes and customer metrics as targets for the work. Trading volatility followed the announcement as some investors booked profits after the intraday rally.