Zscaler Inc. (ZS)

Zscaler Inc. (ZS-Q) has recently experienced a significant downturn, with multiple experts noting substantial drops in stock value—one even citing a 30% decrease due to concerns over identity protection for AI agents. Other analysts express worry regarding elevated capital expenditure (capex) linked to rising component costs, impacting not just Zscaler but the industry at large. Despite a negative overall outlook in the market and fears that AI may disrupt cybersecurity, there are counterpoints highlighting Zscaler's strong annual recurring revenue growth and continued demand for cybersecurity solutions. One expert views the recent dip post-earnings as an opportunity, pointing out that Zscaler reported a 26% increase in recurring revenue while revamping its sales force and focusing on a new platform model, emphasizing its strong position as a cybersecurity provider.