We recently published a list of Why These 15 Cybersecurity Stocks Are Plunging In 2025. In this article, we are going to take a look at where Ziff Davis Inc (NASDAQ:ZD) stands against other cybersecurity stocks that are plunging in 2025.
Cybersecurity stocks ranked among the hottest names on the stock market for years as these companies have been riding a wave of cyber threats and have easily acquired clients. Moreover, AI made them even hotter. These companies delivered jaw-dropping growth as businesses scrambled to protect their data from extremely sophisticated attacks.
Even in this environment, many are still posting very impressive revenue figures. Their services remain in high demand because cybercrime shows no signs of slowing down. Yet despite this strength, their stock prices have taken a nosedive this year. Unfortunately, there’s a lot of pessimism surrounding AI and connected themes like cybersecurity.
Wall Street is pulling back on these names, and the shift has dragged down some stocks that were market darlings just a few months before. It’s a good idea to look into the cybersecurity stocks that have been sold off the most, as there are likely buying opportunities here.
Methodology
For this article, I screened the worst-performing cybersecurity stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A CEO in a suit making a keynote speech in a modern tech conference.
Ziff Davis Inc (NASDAQ:ZD)
Number of Hedge Fund Holders In Q4 2024: 14
Ziff Davis Inc (NASDAQ:ZD) is a digital media and internet company that also does cybersecurity.
The stock is down significantly so far in 2025, as Ziff Davis reported disappointing annual results for 2024.
Although revenues of $1.4 billion were in line with analyst predictions, earnings per share of $1.42 missed estimates by 25%. Following these results, analysts downgraded their 2025 EPS forecasts from $3.94 to $3.53.
Plus, Wall Street firms have cut their price targets for Ziff Davis after the earnings miss. JPMorgan Chase lowered its target from $70.00 to $60.00, UBS Group reduced its target from $65.00 to $56.00, and Citigroup decreased its target from $58.00 to $51.00.
The consensus price target of $65.67 implies 57.36% upside.
ZD stock is down 23.21% year-to-date.
Overall, ZD ranks 8th on our list of cybersecurity stocks that are plunging in 2025. While we acknowledge the potential of ZD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ZD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
