Pale Fire Capital Increases Ziff Davis Holdings Significantly
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 43 minutes ago
0mins
Source: Fool
- Increased Holdings: Pale Fire Capital disclosed the purchase of 1,573,414 shares of Ziff Davis in its SEC filing dated May 14, 2026, with an estimated trade value of $57.86 million, indicating strong confidence in the company.
- Ownership Stake Growth: Following this acquisition, Pale Fire Capital's stake in Ziff Davis now stands at 10.26%, reflecting its significant emphasis on this investment within its portfolio.
- Financial Performance: Ziff Davis reported a 1.9% year-over-year decline in revenue to $267.6 million, with adjusted EBITDA dropping from $71.4 million to $63.4 million, yet its diversified revenue streams from health, gaming, and cybersecurity continue to provide stable cash flow.
- Market Challenges: Ziff Davis faces ongoing pressures in technology and shopping sectors, and investors should monitor its profitability post-Connectivity division, as the stability of its health, gaming, and cybersecurity segments will be crucial for future growth.
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Analyst Views on ZD
Wall Street analysts forecast ZD stock price to fall
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 45.070
Low
34.00
Averages
39.25
High
50.00
Current: 45.070
Low
34.00
Averages
39.25
High
50.00
About ZD
Ziff Davis, Inc. is a vertically focused digital media and Internet company. Its Technology & Shopping segment includes advertising on publishing platforms and commerce sites and publishing of specialized technology-based content and provision of authoritative content relating to products, services, shopping and savings. Its Gaming & Entertainment segment provides authoritative content relating to video games and entertainment Website. Health & Wellness segment includes a collection of interactive tools and mobile applications that are designed to enable consumers to manage a broad array of health and wellness needs on a daily basis. Connectivity segment includes several data and services businesses that sit at the center of the broadband economy and are sources of information on Internet connectivity and network performance. Cybersecurity & Martech segment offers cloud-based Software-as-a-Service offerings for various communication, customer marketing, and other needs of end-users.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Pale Fire Capital Increases Ziff Davis Holdings Significantly
- Increased Holdings: Pale Fire Capital disclosed the purchase of 1,573,414 shares of Ziff Davis in its SEC filing dated May 14, 2026, with an estimated trade value of $57.86 million, indicating strong confidence in the company.
- Ownership Stake Growth: Following this acquisition, Pale Fire Capital's stake in Ziff Davis now stands at 10.26%, reflecting its significant emphasis on this investment within its portfolio.
- Financial Performance: Ziff Davis reported a 1.9% year-over-year decline in revenue to $267.6 million, with adjusted EBITDA dropping from $71.4 million to $63.4 million, yet its diversified revenue streams from health, gaming, and cybersecurity continue to provide stable cash flow.
- Market Challenges: Ziff Davis faces ongoing pressures in technology and shopping sectors, and investors should monitor its profitability post-Connectivity division, as the stability of its health, gaming, and cybersecurity segments will be crucial for future growth.
See More
Ziff Davis to Participate in Investor Conference
- Conference Participation: Ziff Davis announced its participation in the Evercore TMT Global Conference on June 2, 2026, at the Omni San Francisco Hotel, providing investors with an opportunity to engage with company executives despite the absence of a formal webcast.
- Company Overview: Ziff Davis is a vertically focused digital media and internet company with a diverse portfolio that includes leading brands across technology, shopping, gaming, entertainment, health, cybersecurity, and martech, showcasing its strong competitive position in various markets.
- Investor Relations Contact: The company has provided a dedicated investor relations email (investor@ziffdavis.com) for investors seeking more information, reflecting its commitment to transparency and effective communication with stakeholders.
- Media Contact Information: Ziff Davis also offers a media contact email (press@ziffdavis.com) for journalists to obtain company news and updates, further enhancing its public and investor relations image.
See More
Monimus Capital Management Acquires Ziff Davis Shares
- New Investment Disclosure: On May 15, 2026, Monimus Capital Management disclosed a new position by acquiring 241,918 shares of Ziff Davis, valued at approximately $8.90 million, reflecting confidence in the company's future growth potential.
- Value Change of Holdings: According to the SEC filing, the quarter-end value of Ziff Davis holdings reached $10.15 million, indicating a rise in stock price post-acquisition, which suggests market recognition of its digital media and cybersecurity businesses.
- Financial Performance Analysis: Ziff Davis reported a 1.9% year-over-year revenue decline to $267.6 million in the latest quarter, with operating income plummeting nearly 80%, yet gaming and entertainment revenue grew by 7.2%, demonstrating resilience in certain segments.
- Capital Return Strategy: The company spent approximately $51.6 million on share repurchases during the quarter, ending with about $520 million in cash and cash equivalents, indicating a proactive approach to capital management and potential for value release through asset sales in the future.
See More
Ziff Davis Q1 2026 Earnings Call Insights
- Financial Performance Overview: Ziff Davis reported Q1 2026 revenues of $267.6 million, reflecting a nearly 2% year-over-year decline, with a significant 13% drop in the Tech & Shopping segment, while other areas showed nearly 3% growth, indicating a divergence in business performance.
- Share Repurchase Strategy: The company repurchased approximately 1.2 million shares in Q1, deploying $51.6 million, signaling a more aggressive capital allocation strategy by management to enhance shareholder value amidst market pressures.
- Advertising Revenue Fluctuations: Advertising and performance marketing revenues fell by 5.1% in Q1, while subscription and licensing revenues saw a slight increase of 1.9%, reflecting the challenges in the market environment and the company's efforts to diversify its revenue streams.
- Future Outlook: Management did not provide annual guidance for fiscal 2026 but expects Q2 revenues to decline slightly more than in Q1, emphasizing the importance of protecting margins post-Connectivity sale and aiming for year-over-year revenue growth in the second half of 2026.
See More
Ziff Davis Q1 Earnings Misses EPS but Beats Revenue Expectations
- Earnings Performance: Ziff Davis reported a Q1 non-GAAP EPS of $0.73, missing expectations by $0.04, indicating pressure on profitability that could affect investor confidence.
- Revenue Results: The company achieved revenue of $267.6 million in Q1, a 1.9% year-over-year decline, yet it exceeded market expectations by $3.29 million, demonstrating some resilience in revenue stability.
- Strategic Evaluation: Ziff Davis is engaging outside advisors to assess value-creating opportunities, including the recently announced sale of its Connectivity business to Accenture, reflecting the company's efforts to optimize asset allocation for long-term value enhancement.
- Guidance Delay: The ongoing strategic evaluation has led the company to defer its fiscal 2026 guidance, which may increase uncertainty regarding future performance for investors.
See More
ZIFF DAVIS Q1 ADJUSTED NET INCOME REACHES USD 27.5 MILLION, BELOW IBES ESTIMATE OF USD 32.2 MILLION
- Adjusted Net Income: Z F F D A V I S reported an adjusted net income of USD 27.5 million for Q1.
- Comparison with Estimates: This figure is significantly lower than the I B E S estimate of USD 32.2 million.
See More
Pale Fire Capital Increases Ziff Davis Holdings Significantly
- Increased Holdings: Pale Fire Capital disclosed the purchase of 1,573,414 shares of Ziff Davis in its SEC filing dated May 14, 2026, with an estimated trade value of $57.86 million, indicating strong confidence in the company.
- Ownership Stake Growth: Following this acquisition, Pale Fire Capital's stake in Ziff Davis now stands at 10.26%, reflecting its significant emphasis on this investment within its portfolio.
- Financial Performance: Ziff Davis reported a 1.9% year-over-year decline in revenue to $267.6 million, with adjusted EBITDA dropping from $71.4 million to $63.4 million, yet its diversified revenue streams from health, gaming, and cybersecurity continue to provide stable cash flow.
- Market Challenges: Ziff Davis faces ongoing pressures in technology and shopping sectors, and investors should monitor its profitability post-Connectivity division, as the stability of its health, gaming, and cybersecurity segments will be crucial for future growth.
See More
Ziff Davis to Participate in Investor Conference
- Conference Participation: Ziff Davis announced its participation in the Evercore TMT Global Conference on June 2, 2026, at the Omni San Francisco Hotel, providing investors with an opportunity to engage with company executives despite the absence of a formal webcast.
- Company Overview: Ziff Davis is a vertically focused digital media and internet company with a diverse portfolio that includes leading brands across technology, shopping, gaming, entertainment, health, cybersecurity, and martech, showcasing its strong competitive position in various markets.
- Investor Relations Contact: The company has provided a dedicated investor relations email (investor@ziffdavis.com) for investors seeking more information, reflecting its commitment to transparency and effective communication with stakeholders.
- Media Contact Information: Ziff Davis also offers a media contact email (press@ziffdavis.com) for journalists to obtain company news and updates, further enhancing its public and investor relations image.
See More
Monimus Capital Management Acquires Ziff Davis Shares
- New Investment Disclosure: On May 15, 2026, Monimus Capital Management disclosed a new position by acquiring 241,918 shares of Ziff Davis, valued at approximately $8.90 million, reflecting confidence in the company's future growth potential.
- Value Change of Holdings: According to the SEC filing, the quarter-end value of Ziff Davis holdings reached $10.15 million, indicating a rise in stock price post-acquisition, which suggests market recognition of its digital media and cybersecurity businesses.
- Financial Performance Analysis: Ziff Davis reported a 1.9% year-over-year revenue decline to $267.6 million in the latest quarter, with operating income plummeting nearly 80%, yet gaming and entertainment revenue grew by 7.2%, demonstrating resilience in certain segments.
- Capital Return Strategy: The company spent approximately $51.6 million on share repurchases during the quarter, ending with about $520 million in cash and cash equivalents, indicating a proactive approach to capital management and potential for value release through asset sales in the future.
See More
Ziff Davis Q1 2026 Earnings Call Insights
- Financial Performance Overview: Ziff Davis reported Q1 2026 revenues of $267.6 million, reflecting a nearly 2% year-over-year decline, with a significant 13% drop in the Tech & Shopping segment, while other areas showed nearly 3% growth, indicating a divergence in business performance.
- Share Repurchase Strategy: The company repurchased approximately 1.2 million shares in Q1, deploying $51.6 million, signaling a more aggressive capital allocation strategy by management to enhance shareholder value amidst market pressures.
- Advertising Revenue Fluctuations: Advertising and performance marketing revenues fell by 5.1% in Q1, while subscription and licensing revenues saw a slight increase of 1.9%, reflecting the challenges in the market environment and the company's efforts to diversify its revenue streams.
- Future Outlook: Management did not provide annual guidance for fiscal 2026 but expects Q2 revenues to decline slightly more than in Q1, emphasizing the importance of protecting margins post-Connectivity sale and aiming for year-over-year revenue growth in the second half of 2026.
See More
Ziff Davis Q1 Earnings Misses EPS but Beats Revenue Expectations
- Earnings Performance: Ziff Davis reported a Q1 non-GAAP EPS of $0.73, missing expectations by $0.04, indicating pressure on profitability that could affect investor confidence.
- Revenue Results: The company achieved revenue of $267.6 million in Q1, a 1.9% year-over-year decline, yet it exceeded market expectations by $3.29 million, demonstrating some resilience in revenue stability.
- Strategic Evaluation: Ziff Davis is engaging outside advisors to assess value-creating opportunities, including the recently announced sale of its Connectivity business to Accenture, reflecting the company's efforts to optimize asset allocation for long-term value enhancement.
- Guidance Delay: The ongoing strategic evaluation has led the company to defer its fiscal 2026 guidance, which may increase uncertainty regarding future performance for investors.
See More
ZIFF DAVIS Q1 ADJUSTED NET INCOME REACHES USD 27.5 MILLION, BELOW IBES ESTIMATE OF USD 32.2 MILLION
- Adjusted Net Income: Z F F D A V I S reported an adjusted net income of USD 27.5 million for Q1.
- Comparison with Estimates: This figure is significantly lower than the I B E S estimate of USD 32.2 million.
See More
