Ziff Davis eyes record daily gain after asset sale to Accenture

Ziff Davis

03/03/2026 15:28

** Ziff Davis ZD.O shares rallying 76.1% to $49.32 on Tues after co agreed to sell its Connectivity division to Accenture ACN.N for $1.2 bln in cash

    ** ZD stock on track to surpass biggest daily pct gain on record of 69.2% achieved in Jul 2000 and is easily top S&P 1500 index .SPSUP performer on Tues

    ** The division being sold includes Ookla's Speedtest app and Downdetector outage tracker, and the sale will allow ZD to focus on its other websites like IGN and Mashable

** New York City-based ZD said proceeds from transaction expected to be used for general corporate purposes and capital allocation activities

** With move on Tues, ZD shares have surged ~40% YTD, compared to a >4% fall for the Nasdaq .IXIC and 1.5% drop in SPSUP

** Stock recently at 4x expected earnings vs its five-year avg forward PE of about 9, suggesting shares may be undervalued, per LSEG Datastream data

    ** Median PT is $37.00 and avg rating of 7 analysts is "hold"

    ** ACN shares down 0.4% at $205.12 on Tues

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))