Zscaler Inc.ZSBUYJun 02, 2023Stock price when the opinion was issued
As of Jun 10, 2026. Market Open.
He just added more shares following earnings on Wednesday. Shares fell 10%, but what was the market looking for? ZS reported 26% growth in annually recurring revenue, and beat across the board. They've re-done their sales force the past year and focused on their Z Flex model platform--firing on all cylinders. Trades at a slight premium, but they are securing 45% of the S&P 500. Shares have fallen with entire sector where it really doesn't belong. An opportunity.
Cybersecurity stocks--despite several recent major hacks--have gone nowhere, because of their high valuations by any metric. In mid-April they topped and sold off, but are back to their April highs, including Palo Alto and Zscaler. The bigger picture is that what happens if cybercriminals go after the banks or exchanges? Yes, these stocks are expensive, but you want to buy them, such as Palo and Zscaler. Cyber attacks aren't going away, but will get worse.
A May 8 pre-announcement sent shares up 20% that the quarter is going much better than expected and boosted their guidance. Shares have soared about 50%. Today, they reported a beat and even better guidance