What Happened?
A number of stocks jumped in the afternoon session after a broader market rally drove investor optimism in artificial intelligence and big tech stocks. The S&P 500, Dow Jones, and Nasdaq all pushed higher, approaching record levels set late last year.
Much of the positive momentum was linked to the technology sector, with a particular focus on companies advancing artificial intelligence, a key theme at the annual CES trade show in Las Vegas. This continued a powerful trend from 2025, when AI-related developments were a primary catalyst for the market's bull run. The upbeat sentiment was further supported by hopes for easier monetary policy from the Federal Reserve following a weaker-than-expected US Services PMI reading.
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:
- Advertising Software company Zeta Global (NYSE: ZETA) jumped 7.8%. Is now the time to buy Zeta Global? Access our full analysis report here, it’s free for active Edge members.
- Design Software company Cadence Design Systems (NASDAQ: CDNS) jumped 4.7%. Is now the time to buy Cadence Design Systems? Access our full analysis report here, it’s free for active Edge members.
- Project Management Software company Atlassian (NASDAQ: TEAM) jumped 4.2%. Is now the time to buy Atlassian? Access our full analysis report here, it’s free for active Edge members.
- Data Storage company DigitalOcean (NYSE: DOCN) jumped 7.2%. Is now the time to buy DigitalOcean? Access our full analysis report here, it’s free for active Edge members.
- Vertical Software company Bentley Systems (NASDAQ: BSY) jumped 4%. Is now the time to buy Bentley Systems? Access our full analysis report here, it’s free for active Edge members.
Zooming In On Zeta Global (ZETA)
Zeta Global’s shares are extremely volatile and have had 44 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 1 day ago when the stock gained 7.8% on the news that investor attention turned to the annual CES 2026 technology conference in Las Vegas, with artificial intelligence emerging as a central theme.
Attention shifted to tech giants, whose CEOs would headline the event. This focus continued the AI-fuelled momentum that drove market gains the previous year. The rally had global reach, with an MSCI Asia Pacific Index surge being driven by heavyweight chip names like Samsung and Taiwan Semiconductor Manufacturing Company. The event reinforced investor confidence in the long-term demand for the booming AI and chipmaking trend, boosting shares of companies across the semiconductor and technology space.
Zeta Global is up 18.7% since the beginning of the year, and at $23.64 per share, it is trading close to its 52-week high of $24.69 from February 2025. 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 $2,659.
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