What Happened?

A number of stocks fell in the afternoon session after the major indices continued to pull back, with technology stocks accounting for most of the market's largest decliners. A key reason for this trend is that much of the recent market gains were concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed. 

Despite the downturn, some analysts viewed this as an opportunity to own some of the "Core AI winners." Dan Ives of Wedbush Securities commented, "In our view, the tech bull cycle will be well intact for at least another 2-3 years, given the trillions being spent on AI infrastructure/software/chips/power/apps looking ahead. This remains our tech playbook and investor roadmap." Additionally, mixed earnings reports from retailers, such as Target, have added to the market's weakness. Investors are closely monitoring these reports for insights into the broader economic health and the potential impact of new tariffs on inflation.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Financial Technology company Robinhood (NASDAQ: HOOD) fell 3.5%. Is now the time to buy Robinhood? Access our full analysis report here, it’s free.
• Advertising Software company PubMatic (NASDAQ: PUBM) fell 4.3%. Is now the time to buy PubMatic? Access our full analysis report here, it’s free.
• Advertising Software company Zeta Global (NYSE: ZETA) fell 7.3%. Is now the time to buy Zeta Global? Access our full analysis report here, it’s free.
• Consumer Subscription company Chegg (NYSE: CHGG) fell 3%. Is now the time to buy Chegg? Access our full analysis report here, it’s free.
• Media company fuboTV (NYSE: FUBO) fell 5.5%. Is now the time to buy fuboTV? Access our full analysis report here, it’s free.

Zooming In On Zeta Global (ZETA)

Zeta Global’s shares are extremely volatile and have had 51 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was about 22 hours ago when the stock dropped 3.9% on the news that investors took some profits off the table as markets awaited signals on future monetary policy from the Federal Reserve's Jackson Hole symposium later in the week. The downturn in the market was largely attributed to a significant sell-off in megacap tech and chipmaker shares. Nvidia, Advanced Micro Devices (AMD), and Broadcom all saw notable drops, dragging down the VanEck Semiconductor ETF. Other major tech-related companies like Tesla, Meta Platforms, and Netflix were also under pressure. A key reason for this trend is that much of the recent market gains have been concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed.

Zeta Global is down 5.2% since the beginning of the year, and at $17.76 per share, it is trading 51.7% below its 52-week high of $36.74 from November 2024. Investors who bought $1,000 worth of Zeta Global’s shares at the IPO in June 2021 would now be looking at an investment worth $1,998.

Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.