re: a thread for ZETA

Claude likes the deal

Twitter Link

"The deal rebuilds Zeta's data cloud on Palantir Foundry with its Athena AI layer on top, and the two say it can drive more than 100 million dollars in annual revenue in the coming years.

None of that is in the numbers yet, which is the optionality I owned it for. I am not chasing it up near the highs, but the AI thesis keeps getting more concrete. It is up 19% since I bought it."

I’m just talking to myself here but that’s OK because ZETA is a long term story and jumping in without conviction could end badly.

But if you are wanting to learn more, especially about the potential of the Palantir partnership, this is quite informative. A PLTR guy and a ZETA guy discussing it from both sides

Youtube Link

PLTR is a 300B company, ZETA is 5B. PLTR could swallow ZETA whole just by buying all their shares at market (theoretically) using about half their free cash . Buts that’s not what’s going on.

I am very excited about where this could go and the risk “should” mitigate quickly after the Q2 earnings call

added on yesterday.

held over 20, let’s see what happens the rest of the week. Monday afternoon (7/6) they could be adding a little fuel to the fire

here is a taste of what is likely to be discussed at the panel on Monday. Steinberg refers in some detail to a “hotel client” as a proof case of the business intelligence model

CNBC

quote:

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“Marketing is just the first application, our long term goal is to build an OPERATING SYSTEM based on Athena.”

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buzzwords, 50% rev growth is all I care about. Wish CEO's would STFU and go make money.

Zeta has an investor announcement tomorrow at 4:30pm, they’ve teased it as their “AI roadmap” for the future. They’ve just replatformed their consumer data graph on to palantir’s Foundry, which means that it can be accessed by enterprise customers and analyzed securely…and not just for marketing

quote:

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In short, Zeta is exploring a move to monetize its deep consumer insights as high-end financial and corporate intelligence, opening a lucrative, enterprise-level revenue stream outside of the traditional marketing department.

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it also seems likely they’ll announce the first of their customers using both zeta and palantir (and/or snowflake).

TLDR it seems evident that there are significant revenues either captured or on the way that are not reflected in guidance. A lot of this has been happening under the radar, that could change tomorrow after the market closes.

Q2 earnings are already expected to be robust. They could raise guidance again, and maybe even guide to reaching 2028 revenues in 2027.

let’s see what happens

let’s be clear on what we are looking for here. Zeta currently trades at roughly 2x forward guided sales, which is not atypical for a marketing platform in which revenues are highly cyclical and sensitive to economic conditions.

A sticky enterprise software company though can trade 5-6x forward earnings; revenue is considered embedded and RPU tends to trend up (the more you use it the more you spend) and if outcomes are positive it will get used more.

So the question is can zeta demonstrate real progress as an enterprise business intelligence software platform? Because if it can, it will get re rated by the market and this 20 dollar stock can trade in the 40-50 range without adding a single dollar of revenue. It’s all about what institutions are willing to pay for future earnings, today.

Management has been clear about that being the goal…move past marketing into business development and intelligence. So they are telling us what they intend to do. PLTR can help make that happen

I'm riding with Cgrand too, bought shares this morning during pre-market for about $20.61.

Bought 3 Jan 2027 calls