Shares of Zeta Global Holdings Corp. (ZETA) plummeted 5.15% in Monday's trading session, following a critical analysis that highlighted the company's profitability challenges and growth concerns. The significant drop comes as investors reassess the company's position in the competitive marketing technology landscape.

A recent report from StockStory identified Zeta as one of three unprofitable stocks that investors should approach with caution. The analysis pointed out several key issues facing the company, including a concerning net revenue retention rate of 97.1%, which suggests difficulties in customer retention. Additionally, Zeta's gross margin of 60.4% was noted to be below that of its competitors, potentially limiting its ability to invest in crucial areas such as marketing and R&D.

The report also criticized Zeta's rapid expansion strategy, which has come at the expense of operating profitability. With a trailing 12-month GAAP operating margin of -4.5%, the company's path to profitability remains uncertain. As the market increasingly scrutinizes unprofitable tech companies, Zeta's stock price has come under pressure, reflecting growing investor concerns about its business model and future prospects in a challenging economic environment.