Zscaler Inc. (ZS)

Zscaler Inc. (ZS-Q) has faced a turbulent day, with a significant drop of 30% reflecting concerns over rising capital expenditure due to increased component costs. Despite this, some experts maintain a favorable outlook, citing the company's ability to grow its annual recurring revenues significantly, with a reported 26% growth that exceeded market expectations. The company has revamped its sales force and is focused on its Z Flex model, highlighting strong demand in the cybersecurity sector. While the market is nervous about AI potentially disrupting cybersecurity, many argue that the fears are overstated and view the current price drop as an opportunity for investors, particularly as Zscaler secures a substantial portion of enterprise clients. Overall, there are divergent views on the potential impact of AI and rising costs on Zscaler's future performance.