Zapata Quantum

ZPTA · OTC

$0.72−$0.03 (−4.00%)TodayMarket closed · Oct 20, 3:58 PM ET

Prev close $0.75

ZPTA analyst rating

BuyConsensus of 1 analyst over the last 12 months. 100% rate it a buy.

Strong buy0
Buy1
Hold0
Underperform0
Sell0

12-month price target · 3 analysts

Average $2.04 (+183.3% upside)

Low: $2.02
Now: $0.72
High: $2.10

Upgrades and downgrades

The latest rating actions, newest first

ZPTA analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Chardan Capital	Oct 13, 2026	Initiates	Buy	$1.00	28%

The case for and against

Updated Dec 28, 2024

Bull case

Zapata Computing Holdings Inc. is poised for significant growth, with projected quarterly sales expected to increase by 18% sequentially to $1.4 million, and a robust sales growth forecast of 113% in 2025, reaching $15 million. The company's gross margin is anticipated to improve markedly from 22.7% this year to 52.0% by 2030, reflecting improved operational efficiency and profitability. Additionally, Zapata's strategic partnerships, such as the expanded relationship with Sumitomo Mitsui Trust Bank, combined with its strong engineering talent and thought leadership in the industry, position it favorably for securing substantial contracts with Fortune 1000 companies and government entities.

Bear case

Zapata Computing Holdings Inc. presents a concerning financial outlook due to its high sales and marketing costs, with a forecasted decline from 96.5% to 12.5% of sales by 2030, which indicates persistent initial investment before achieving profitability. Additionally, the research and development intensity, although projected to decrease from 85.4% to 8.1%, suggests continued heavy reliance on expenditure to innovate and compete within the generative AI sector. Furthermore, the enterprise's reliance on an Equity Line of Credit for funding, coupled with low projected EV/sales ratios in the face of anticipated high sales growth, raises concerns about its valuation trajectory and profitability sustainability through the decade.

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