Zeta Global Holdings slides after short-seller report

Zeta Global Holdings

13/11/2024 18:53

** Shares of cloud platform Zeta Global Holdings  ZETA.N 
fall 11.3% to $25.03
    ** Short-seller Culper Research said it is short on the
company
    ** "ZETA has formed "two-way" contracts with third party
consent farms wherein the Company simultaneously acts as both a
supplier and a buyer of consumer data, not only allowing the
Company to flatter reported revenue growth, but raising round
tripping concern" - Culper 
    ** Company has "quietly spun up its own network of consent
farms i.e., sham websites that hoodwink millions of consumers
each month into handing their data over to Zeta under false
pretenses" - Culper 
    ** Culper Research claims the "consent farms" have "driven
almost the entirety of Zeta's growth over the past 2+ years and
now represent 56% of reported Adj. EBITDA"
    ** ZETA also faces "potentially devastating regulatory
action" - Culper
    ** Twelve of 14 brokerages rate the stock "buy" or higher,
two "hold"; their median PT is $42.00
    ** Including session's moves, ZETA had more than doubled YTD

 (Reporting by Rishi Kant in Bengaluru)
 ((Rishi.Kant@thomsonreuters.com))