Zscaler Inc. (ZS)

Zscaler Inc. has faced significant selling pressure, with shares down 30% today amid concerns about rising capital expenditures driven by higher component costs. Some experts emphasize that the company's products may struggle to assure identity protection due to potential disruptions from AI technology, leading to skepticism about their long-term viability. Despite these challenges, Zscaler is reportedly growing its annual recurring revenue in the enterprise space, reflecting sustained demand for cybersecurity solutions. Following a recent earnings report showing 26% growth in recurring revenue and successful adjustments in sales strategies, some investors see value in the stock, questioning the broader market sentiment that it is unfairly affected by sector-wide declines.