Value stocks typically trade at discounts to the broader market, offering patient investors the opportunity to buy businesses when they’re out of favor.
The key risk, however, is that these stocks are usually cheap for a reason – five cents for a piece of fruit may seem like a great deal until you find out it’s rotten.
A number of stocks fell in the afternoon session after concerns grew over lofty valuations and the uncertain profitability of artificial intelligence investments.
A number of stocks fell in the afternoon session after investors grew increasingly concerned that the billions of dollars being invested into artificial intelligence may not generate sufficient profits.
A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth.
Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.
Shares of marketing technology company Zeta Global (NYSE:ZETA) jumped 3.3% in the afternoon session after the company announced record performance for its AI Marketing Cloud platform during the pivotal holiday shopping weekend. From Thanksgiving through Cyber Monday, platform usage surged 153% compared to the previous year, while the company's AI agent activity increased 25 times. The platform also maintained 100% uptime, a critical factor as enterprise brands depended on it to send their most important messages during the peak period. The strong performance highlighted the growing adoption of Zeta's AI, with the company noting that clients who used its AI Agents saved 87% of their time on repetitive tasks. The results also reflected momentum from the recent acquisition of Marigold's enterprise software business.
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead.
They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
A number of stocks fell in the morning session after investors grew increasingly skittish about the strength of the artificial intelligence boom and anxiously awaited key earnings reports.
A number of stocks fell in the afternoon session after investors showed signs of fatigue with the AI-led rally, rotating out of high-valuation growth names.
Zeta Global’s third quarter was marked by strong revenue growth and a positive market reaction, reflecting momentum in its AI-driven marketing platform and customer base expansion. Management pointed to broad-based industry gains, particularly in telecom, and highlighted the impact of deeper multi-use case adoption among enterprise clients. CEO David Steinberg emphasized that Zeta’s platform “delivers a 6:1 return on investment” for clients, crediting AI integration and data-driven personalization as key differentiators. The company’s successful Zeta Live event further contributed to pipeline growth and customer engagement.
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions.
While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
