What happened
Shares of Zeta Global Holdings (ZETA 1.37%), a cloud-based marketing technology company, were skyrocketing today after it announced late yesterday that it had acquired an audience engagement company called Apptness.
The tech stock was up an astonishing 23% as of 3:12 p.m. EDT on Tuesday.
So what
Zeta Global said in a press release that Apptness' engagement platform will be directly integrated into Zeta's marketing platform and expand the company's data cloud.
Image source: Getty Images.
Zeta's CEO, David Steinberg, issued a statement saying that the acquisition will "enrich our data footprint, strengthen our actionable 360-degree view of the consumer, and help Zeta customers achieve even stronger results."
The Apptness acquisition is Zeta's first as a publicly traded company, and Zeta says that it should increase its platform revenue and lower its cost of revenue.
Additionally, Zeta says that the addition of Apptness will add "incremental" consumers to its platform and help its network of more than 6 million websites "increase consumer engagement and grow subscription revenue."
Now what
Zeta Global just went public back in June, and since then, the stock has been pretty volatile. Even with today's massive gains, the tech company's stock is still down more than 13% since its IPO.
Considering that Zeta is a relatively new publicly traded company and its share price skyrocketed more than 20% on news of just one acquisition, investors might want to be cautious with this young tech stock.