We recently published an article titled Market Slump Drags Down Share Prices of These 15 Companies. In this article, we are going to take a look at where Zeta Global Holdings Inc. (NYSE:ZETA) stands against the other stocks.

Wall Street’s main indices ended this week’s trading on a bloodbath following an overall market selloff as investors shifted their capital into assets offering higher returns.

This article will delve into the factors behind the downturn and explore why each company was particularly affected.

To come up with Friday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A marketing manager looking at the data dashboard of a marketing automation software showing successful campaign results.

Zeta Global Holdings Inc. (NYSE:ZETA)

Marketing technology firm Zeta Global Holdings registered a 6.84-percent decline in its share prices on Friday to finish at $17.67 each following a class action lawsuit alleging that the company failed to disclose it was artificially inflating financial results.

In the lawsuit, plaintiffs alleged that the company failed to disclose that it used two-way contracts to artificially inflate financial results, that it engaged in round trip transactions to artificially inflate financial results, utilized predatory consent farms to collect user data and that the consent farms have driven almost the entirety of Zeta’s growth.

Law firms on Friday reminded shareholders with losses on their investment to reach out to them.

Overall ZETA ranks 8th on our list of the stocks that were recently dragged down by market slump. While we acknowledge the potential of ZETA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ZETA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article is originally published at Insider Monkey.