why is zscaler stock going downwhy is zscaler stock going down

why is zscaler stock going down28 May why is zscaler stock going down

Yes, 3, 4 quarters ago, a CIO could get the deal done, more and more deals do go to CFO for approval now. What Should I Do? Unlike other tech stocks, Zscaler is not trading at compelling valuations today. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. Is Zscaler (ZS) Likely to Surpass Q3 Earnings Estimates? It trades at EV/sub revenue multiple of 9.4x and 7.4x, respectively. However, if this isn't the case, investors might get caught out paying too much for the stock. Broadcom led earnings movers late. Zscaler stock was tumbling Friday after the cloud-based internet security company's guidance deflated investor enthusiasm, even as its second-quarter results handily beat estimates. The yield on the benchmark 10-year Treasury fell for a second day to 3.636%, from 3 . "Customers are not only gaining security advantages from our Zero Trust model but they are also reaping the benefits of faster innovation and economics from our global cloud, which is now processing more than 210 billion transactions per day," saidJay Chaudhry, chairman and CEO of Zscaler. Unlike many other highly buyable tech stocks, ZS still trades at elevated multiples. 5 Best-Performing Stocks of the Top ETF of May. , stating that the stock was still overvalued in spite of a mild correction. It's good to see that Zscaler is outpacing expectations. Also, billings rose 71% to $247.7 million, blowing past estimates of $204 million. What's Going On With Palo Alto, CrowdStrike And Zscaler Shares? August 19, 2019 at 12:55 PM What happened Sharers of cloud security provider Zscaler (NASDAQ: ZS) sank on Monday, despite no company-specific news. The company has sustained 2 straight quarters of accelerated revenue growth, with a 63% growth rate that is higher than pandemic levels. Get short term trading ideas from the MarketBeat Idea Engine. So far, neither of these has been slowing down ZS's growth, but it is a risk. OKTA Gears Up to Report Q1 Earnings: What's in the Cards. ZS primarily generates revenue for the sale of subscription to access its cloud platform. While ZS is down nearly 40% from all-time highs, the stock remains nearly 300% higher than pre-pandemic levels. Create a list of the investments you want to track. It's worth noting this also comes after AI stocks underwent a recent rally. For the current quarter ending in January, the company expects earnings of 11 cents a share amid higher investments in its sales force. I am not receiving compensation for it (other than from Seeking Alpha). Zscaler ( NASDAQ: ZS) has been one of the hottest stocks during the 2021 stock market frenzy. But investors have caught on. To keep up with the criminal threats, organizations of all types continue to pour money into protecting against these threats. ZS News Today | Why did Zscaler stock go up today? - MarketBeat These deals havent gone away and customers are taking longer to make decisions and requiring additional approvals.. ', Investing In The Future Of The Hydrogen Economy, Zscaler Stock Gets A Composite Rating Upgrade Day Before Earnings, After Bullish Report In March, Salesforce Stock Ramps Higher Ahead Of Results; 3 Security Software Stocks To Watch, Cybersecurity Stocks To Watch As Earnings Reports Come In, Dow Jones Dips As Zscaler Rockets; Three Warren Buffett Stocks Near Entries As Berkshire Gains. Get Zscaler News Delivered to You Automatically. By adding new services, or modules, to the platform, customers are then upsold, encouraged to add more modules, or functionality, to their customized platform. Tesla is clearing a Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! Why Zscaler, Snowflake, and Datadog Surged This Week, 2 Red-Hot Cybersecurity Stocks to Buy In May and Hold for Decades, Why Zscaler, Datadog, and Wix Stocks All Rallied Wednesday Morning, Why Downtrodden Zscaler Stock Suddenly Soared Today, Better Cybersecurity Stock: Tenable vs. Zscaler, If History Repeats, 1 Widely Owned Commodity Is Set to Skyrocket, Cathie Wood Says Software Is the Next Big AI Buying Opportunity -- And These 4 Stocks Could Skyrocket, If You're Not Making These 401(k) Moves, You're Making a Big Mistake, Prediction: 2 Top AI Growth Stocks That Will Be Worth More Than $1 Trillion by 2030, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. Portions of this content protected by US Patent numbers 7,865,496, 7,856,390, and 7,716,116. Copyright 2023 MarketWatch, Inc. All rights reserved. and a 20% drop on the ETFMG Prime Cyber Security ETF Zscaler (ZS) Q3 2023 Earnings Call Transcript | The Motley Fool 86% of retail CFD accounts lose money, Zscaler (ZS) Receives a Hold from Loop Capital Markets, Analysts Have Conflicting Sentiments on These Technology Companies: Zscaler (ZS), Samsara (IOT) and Broadcom (AVGO), Zscaler (ZS) Gets a Buy from Evercore ISI, BTIG Sticks to Its Hold Rating for Zscaler (ZS), Stifel Nicolaus Remains a Buy on Zscaler (ZS), Canaccord Genuity Sticks to Its Buy Rating for Zscaler (ZS), Zscaler (ZS) Receives a Rating Update from a Top Analyst, Piper Sandler Reaffirms Their Hold Rating on Zscaler (ZS), Registration on or use of this site constitutes acceptance of our. In this follow-up report, I show why despite the 40% fall, the stock is still not really buyable. This year, the total cost of cybercrime is expected to reach an astounding $8 trillion. investors.com IBD University | Welcome RESEARCH Zscaler Inc (ZS) NASDAQ $ 135.31 9.82 6.77% 3 Mil Get a Leaderboard Chart for ZS ? Multiple Insiders Sold SpartanNash Shares Presenting Weak Signs For Investors \. Wall Street Smells a Buying Opportunity. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Monday.com Leads 13 Top IPO Stocks To Watch, 'I'm 50 And I Have Never Saved For Retirement. Given where the rest of tech trades, I recommend avoiding the stock at current levels in favor of more attractive alternatives. High conviction investment ideas in the winners of tomorrow. -0.29% I have no business relationship with any company whose stock is mentioned in this article. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. ZS is a cloud security provider. Zscaler has delivered accelerating revenue growth for 2 straight quarters. This segment is projected to grow 31% this year, according to Gartner. ZS News Today | Why did Zscaler stock go up today? ZIA, ZPA, and ZDX solutions as well as ZIA add-ons all increase the cost of a product per user. ZS said on its fiscal Q2 call that Workload solutions has be roughly double year over year. That's shaping up to be materially higher than the 13% per year growth forecast for the broader industry. Can you close the business? Number one, due to tight environment, is there enough demand? ZS still has plenty of room to grow, both adding new customers as well as through upselling to its existing customer base. Members of Best Of Breed get exclusive access to our model portfolio. Therefore, I'm a little surprised to see the market respond this positively today. The stock is downtrodden and still 45% below its 52-week high, even after today's gains. Zscaler stock jumped in 2020 amid a corporate shift to remote work during the early coronavirus crisis. The stock was down about 8% at 12:20 p.m.. Like other tech stocks, Zscaler is down nearly 40% from all-time highs. As of Thursdays close, Zscalers stock is down 47% over the past 12 months, compared with a 9% loss by the S&P 500 index Generally hard times make demand soft. Management raised full-year revenue guidance by about 2% to $1.587 billion to $1.591 billion. I wrote this article myself, and it expresses my own opinions. Why Zscaler, Snowflake, and Datadog Surged This Week, 2 Red-Hot Cybersecurity Stocks to Buy In May and Hold for Decades, Why Zscaler, Datadog, and Wix Stocks All Rallied Wednesday Morning, Better Cybersecurity Stock: Tenable vs. Zscaler, 2 High-Growth Cybersecurity Stocks to Buy in April 2023, If History Repeats, 1 Widely Owned Commodity Is Set to Skyrocket, Cathie Wood Says Software Is the Next Big AI Buying Opportunity -- And These 4 Stocks Could Skyrocket, If You're Not Making These 401(k) Moves, You're Making a Big Mistake, Prediction: 2 Top AI Growth Stocks That Will Be Worth More Than $1 Trillion by 2030, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. AI stock is down 10.6% as of . Stock Market Today: Dow Down at Close As Traders Await Debt-Ceiling Vote Premarket Mover: Confluent Inc (CFLT) Up 2.59%, Kopin Corporation (KOPN) is up 2.64% Friday In Premarket Trading, Bridgeline Digital Inc (BLIN) Down 2.91% in Premarket Trading, Taiwan Semiconductor Mfg. Zscaler Inc's ( ZS) price is currently down 19.6% so far this month. Wallace Witkowski came to MarketWatch from the Associated Press in New York, where he covered the business of Big Pharma, after covering FDA regulation of many of the same companies, as well as medical devices, in the Washington, D.C., area. Adjusted net income, which excludes stock-based compensation and other items, was 37 cents a share, compared with 13 cents a share in the year-ago period. Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only. Already a. The Cybersecurity Stock Soars. For Q3, Zscaler's management expects to report revenue of $415 million to $419 million -- remember, these results are preliminary, so the numbers aren't final. Visit a quote page and your recently viewed tickers will be displayed here. Zscaler has delivered accelerating . Why Zscaler? Why now? | Zscaler Looking into that outlook, Advance Auto Parts expects earnings per share of $6 to $6.50 alongside revenue ranging from $11.2 billion to $11.3 billion in 2023. Year to date, Zscaler Inc's stock is down 67.18%. Heading into fiscal. Intraday Data provided by FACTSET and subject to terms of use. Zscaler ZS, +0.48% shares dropped 12% after hours, following a 4.4% gain in the regular session to close at $134.13, after the company saw a slowing in its billings in the current quarter. Real-time analyst ratings, insider transactions, earnings data, and more. Learn More. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. It is possible that the ongoing war in Ukraine has led investors to expect increased spending on cybersecurity, but even so, current multiples appear quite stretched. Historical and current end-of-day data provided by FACTSET. ZPA can grant access to an app without exposing its identity or location. Since then, the stock has fallen another 20%, but after the latest earnings report projected for steady declines in growth, it is my view that this is not a "buy the dip" moment. The companys financials are strong - very strong in fact. In this space, ZS ranks very highly as the clear leader as measured by Gartner. Upgrade to MarketBeat All Access to add more stocks to your watchlist. 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. There are better alternatives elsewhere. It has three main products: Zscaler for Users, Zscaler for Workloads and Zscaler for IoT/OT. While I expect the company to continue growing at rapid rates, the current stock price suggests that investors are counting on growth rates to remain at unsustainable levels. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Get in touch with us directly. Since its price has surged higher, Zscaler may be sending strong sell signals at present with a price-to-sales (or "P/S") ratio of 14.1x, when you consider almost half of the companies in the Software industry in the United States have P/S ratios under 4.2x and even P/S lower than 2x aren't out of the ordinary. Stock Price data may be delayed up to 15 minutes. The company also modestly raised full-year guidance, which the market liked as well. And it raised full-year bookings guidance by about 1% to 2% to $1.970 billion to $1.974 billion. BMO Capital analyst Keith Bachman maintainedZscalerwith an Outperform rating and loweredthe price target from$415to$270. Zscaler (NASDAQ:ZS) is one of the tech stocks that leave me scratching my head. Zscaler Unusual Options Activity For May 30. Shares in Zscaler tumbled 8.3% to close at 318.21 on the stock market today. While it has the opportunity for greenfield expansion, there is also still a big replacement market out there. These 3 trends will power the future of artificial intelligence, WeQuit: WeWork bonds sink after top executives resign from cash-burning company, Targets stock, on its longest losing streak in 23 years, downgraded at JPMorgan, Lucid Groups stock slides 10% premarket after EV company announces $3 billion stock offering and private placement. I think interested investors can take a starter position at current levels, and be more aggressive on any stock pullback. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. ZS is projected to generate $2.02 billion in revenue in fiscal 2024 (ending July) and $2.57 billion in fiscal year 2025. For the second quarter, Zscaler reported billings, or revenue plus deferred revenue acquired over the quarter, of $493.8 million in the second quarter, while Wall Street expected billings of $491 million. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. Why Theres Still Time to Buy. To see all exchange delays and terms of use please see Barchart's disclaimer. for Users, Zscaler for Workloads and Zscaler for IoT/OT. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. MW Forecast: Nonfarm payrolls estimated to rise 190,000 in May. Learn about the media coverage comparison. Bilibili (BILI) to Report Q1 Earnings: What's in the Cards? Log in to see them here or sign up to get started. CRM, Jon Quast has positions in Zscaler. C3.ai, Samsara, Zscaler, First Solar, Apple, and More Stock Market Movers Today, Zscaler stock sheds more than 10% as cybersecurity company has a lot more explaining to do, Stocks on the move: C3.ai surges but ChargePoint and Zscaler dive, Zscaler stock drops 12% after deal delays overshadow raised outlook. Zscaler: Buy If You Are Tolerant To Short-Term Volatility ZS guided for the next quarter to have up to $272 million in revenue and for the year to have up to $1.05 billion in revenue. Why Zscaler Shares Are Falling Today | Markets Insider At current prices, ZS is trading at 12x 2025e sales. My portfolio includes my highest conviction ideas that I think will absolutely crush the market over the next decade. It seems most investors are expecting this strong future growth and are willing to pay more for the stock. Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. Why Zscaler Inc's (ZS) Stock Is Down 6.89% | AAII - Investor Education The company has guided for decelerating growth rates, but has not been punished like peers for the same crime. ZS stock trades with minimal upside even using aggressive forward estimates. Have feedback on this article? Thats the model supporting identity-management software company Okta Inc. Analysts had projected earnings of 12 cents a share. These Stocks Offer Shelter From Bank Turmoil. Read: These Three Horsemen of cybersecurity most likely to weather slowing demand, Morgan Stanley says. Zscaler earnings were 14 cents a share on an adjusted basis, the same as a year earlier. Friday, June 02, 2023 08:13 AM | InvestorsObserver Analysts, Friday, June 02, 2023 08:12 AM | InvestorsObserver Analysts, Friday, June 02, 2023 08:10 AM | InvestorsObserver Analysts, Friday, June 02, 2023 07:58 AM | InvestorsObserver Analysts, Thursday, June 01, 2023 11:17 AM | InvestorsObserver Analysts. Analysts Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. With this information, we can see why Zscaler is trading at such a high P/S compared to the industry. Berkshire Hathaway, Dish, AMC, Tyson and other stocks on the move. The IBD Live team paid tribute to William ONeil and his legacy. I am not receiving compensation for it (other than from Seeking Alpha). While the macro environment could impact sales growth some, ZS is still in the right area and shouldnt see a huge impact to its business, with ZTNA being one of the biggest cybersecurity priorities among organizations. Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: Sign up to receive the latest news and ratings for ZS and its competitors with MarketBeat's FREE daily newsletter. Octahedron Capital Management L.P. Boosts Holdings in Zscaler, Inc. (NASDAQ:ZS), Zscaler (ZS) to Release Earnings on Thursday, Manchester Global Management UK Ltd Purchases New Position in Zscaler, Inc. (NASDAQ:ZS), Zscaler, Inc. (NASDAQ:ZS) Given Consensus Rating of "Moderate Buy" by Brokerages, Zscaler (NASDAQ:ZS) Price Target Cut to $165.00, Baird Maintains Zscaler (ZS) Outperform Recommendation, Looking At Zscaler's Recent Unusual Options Activity, Exos TFP Holdings LLC Makes New Investment in Zscaler, Inc. (NASDAQ:ZS), Zscaler (ZS) Gets a Buy from Robert W. Baird, Robert W. Baird Cuts Zscaler (NASDAQ:ZS) Price Target to $165.00, Tlwm Buys Shares of 2,271 Zscaler, Inc. (NASDAQ:ZS), Zscaler (ZS) to Release Quarterly Earnings on Thursday, AXQ Capital LP Takes Position in Zscaler, Inc. (NASDAQ:ZS), Zscaler stock surges on upbeat earnings preview, full-year forecast. Zscaler expects revenue of $241 million vs. estimates of $224.8 million. Zscaler is universally recognized as the leader in zero trust. I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours.

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