The Pomp Podcast
#1453 David Steinberg | How Short Sellers Attack Public Companies
- David Steinberg, founder and CEO of Zeta Global, discusses a major short-seller attack on his company and how it has responded with execution, stock buybacks, and transparency.
- Zeta Global is an AI-powered marketing platform that helps Fortune 500 companies reduce customer acquisition costs by approximately 50% using data targeting and intent scoring.
- The company achieved 42% organic growth and 92% free cash flow growth in Q3 2024, hitting record performance just before the short report was published.
- Short sellers accused Zeta of running unethical data signup farms and financial fraud; the company filed an 8-K with the SEC refuting each claim point-by-point and conducted a three-hour investor summit demonstrating compliance and data practices.
- Steinberg lost over $1 billion in personal wealth during the stock decline from $37 to $17, but announced a $100 million share buyback and personally invested millions alongside management to signal confidence in the business.
- The company has not lost a single customer since the short report, won a Fortune 100 RFP, and received 20 increases and 50 upsells from existing clients in the three weeks following the attack.