Zeta Global: A Second-Chance Investment in the Underfollowed AI-Driven B2B Marketing Sector

In the rapidly evolving AI-driven B2B marketing landscape, Zeta Global (NYSE: ZETA) has emerged as a compelling second-chance investment opportunity. While giants like Salesforce and Adobe dominate headlines, Zeta's underfollowed status-coupled with its robust financial performance and leadership in AI innovation-positions it as a hidden gem for investors seeking exposure to the next wave of digital transformation.

Zeta's Financial Momentum and Strategic Positioning

Zeta Global delivered a 35% year-over-year revenue increase in Q2 2025, reporting $308 million in revenue and raising its full-year guidance to $1.263 billion, according to Zeta Global's investor release. This growth is underpinned by its AI-powered marketing platform, which serves 44% of the Fortune 100 and was recently named a leader in Forrester's AI Cross-Channel Marketing Hubs report, the company said. The company's financial discipline is equally impressive: free cash flow surged 69% to $34 million, and adjusted EBITDA grew 52% to $59 million, the release added. These metrics highlight Zeta's ability to scale efficiently while maintaining profitability-a rarity in the high-growth tech sector.

Zeta's strategic initiatives further reinforce its long-term potential. The company has launched a $200 million stock repurchase program and is leveraging its proprietary data assets to deliver 25–40% higher ROI than industry benchmarks. Analysts have taken notice, with eight firms raising price targets to an average of $24.62, and a consensus "Moderate Buy" rating from 16 analysts, per MarketBeat's consensus.

Historical patterns suggest caution, however. A backtest of Zeta's performance following earnings beats from 2022 to 2025 reveals a mixed picture: while the stock gained ~1.9% on the first trading day after a beat in all three observed cases, cumulative returns turned negative by day 10, averaging -12% by day 30, according to a backtest. This short-lived optimism underscores the importance of monitoring execution and market sentiment beyond quarterly results.

Underfollowed Yet Undervalued: The Analyst Coverage Gap

Despite its strong fundamentals, Zeta remains underfollowed compared to peers. As of Q2 2025, it is covered by just 16 analysts, a stark contrast to Adobe's 27 analysts and Salesforce's implied higher coverage (though exact numbers for Salesforce are unspecified), per MarketBeat's Adobe alert. This disparity creates an asymmetry: while Zeta's market cap of $3.75 billion lags behind Salesforce ($35.55 billion) and Adobe ($22.6 billion), according to CSIMarket data, its AI-driven platform is recognized as a category leader. Forrester's June 2025 report noted that Zeta is the only provider among 14 evaluated to offer generally available AI capabilities across all 26 cross-channel marketing use cases, an observation highlighted in company commentary.

The underfollowed status also suggests untapped institutional interest. Zeta's average 1-year price target of $30.14 implies a 45% upside from its current valuation, according to MarketBeat's note, a premium that could expand as more investors recognize its niche dominance. In contrast, larger peers like Salesforce and Adobe, despite their broader analyst coverage, face market skepticism over slowing growth rates and competitive pressures, according to CNBC coverage.

Competitive Advantages in a Crowded Market

Zeta's AI maturity and cookieless tracking readiness give it a critical edge. Publicis Sapient and QKS Group have ranked Zeta atop their AI Maturity Matrices, underscoring its ability to execute on complex AI use cases, the company noted. Its platform's focus on data privacy-crucial in a post-cookie era-aligns with regulatory trends and client demands, enabling 120% YoY growth in its Data Cloud business, per MarketBeat's coverage. Meanwhile, competitors like Salesforce and Adobe, while dominant in broader CRM and digital media segments, struggle to match Zeta's agility in niche AI applications.

Financially, Zeta's market share of 0.55% in the Technology Sector and 1.47% in the Software & Programming Industry, as shown on the investor coverage page, may seem modest, but its ROI outperformance and AI leadership suggest a path to capturing a larger slice of the $200+ billion B2B marketing tech market.

Conclusion: A Second-Chance Opportunity in AI-Driven Growth

Zeta Global's combination of strong financials, AI innovation, and underfollowed status makes it a standout in the AI growth stock universe. While it lacks the brand recognition of Salesforce or Adobe, its niche leadership and disciplined execution offer a compelling risk-reward profile. For investors seeking exposure to AI-driven B2B marketing without the crowded trade, Zeta represents a second-chance opportunity-a company poised to outperform as the market re-evaluates its potential.