re: a thread for ZETA

Zeta now trading at 5x sales. Fair value IMO.
Once we get positive earnings for trailing 12 months a more useful P/E metric can be calculated (forward P/E is about 25x) and I believe we will see 50 at some point before the end of 2027

That’s the re-rate. This is still a small fish in a big pond.

Thanks for the heads up on this stock. I didn't buy many shares but started with 4 calls for 1/27 and have been selling when it goes up and buying when it drops ended buying 12 calls total and finished getting out today for a total profit of $2300.

Will sell these in the upper $30s
Hopefully within 12 months from now.

Snagged one more at 11.05
Y'all don't let me sell this time

I like Stephen.

I do too. Remarkably the same people who were ahead of PLTR are “ahead” on ZETA, because the sticky FCF flywheel looks so similar.

a consumer targeting company will always face headwinds that an enterprise targeting company will not, however if the thesis plays out and ZETA becomes enterprise critical then the whole valuation proposition changes

At 7x right now ZETA would be at 50. At 7x in three years it might be pushing 100. That’s some serious opportunity

Also, two investors’ conference appearances back to back next week on 9/8 and 9/9. Hopefully some PLTR deal news.

It’s getting hard to stay bearish on this for the long term. If you trust management theres real cause for optimism

wait for a red day

there are two possible catalysts upcoming which could push the stock thru heavy psychological resistance at the current highs

-investor conference presentations this week where they could add some numbers to the PLTR go to market deal

-Zeta Live (annual corporate conference) in October where they “should” announce the roll out of AthenaOS their new enterprise operating system

Then, Q3 earnings on 11/3

I don’t trade options so I can’t help you there, and we need to be realistic that the stock price is right now approaching extension. I do think 35 is on the way so there’s 10% or so upside sitting there but after that it will probably take another big earnings beat. If at the Q3 call they guide to meet 2028 revenue targets in 2027 (a year early), which I think they will do, there should be another partial rating jump into the 6x or 7x range. That would still be low for an enterprise software company with positive and growing EPS and free cash flow

All that is to say, I would wait for any red day as support has been established at 31-32. Longer time frames are a bit more risky but LEAPS would give you more runway as this is still at the very early stages

pretty major support at 30-31, any fall thru that should be temporary. if it does fall thru and stay there then high 20's. it was a ladder going up, should be safe rungs below