BTIG downgraded Zscaler stock from Buy to Neutral and removed its price target after the stock fell 44% year-to-date, despite strong earnings and raised revenue guidance. The downgrade reflects concerns over valuation rather than business fundamentals, highlighting risks like ongoing GAAP losses and acquisition integration. Zscaler's revenue and ARR growth remain solid, but the stock's decline signals market skepticism about profitability and growth quality compared to competitors. Investors should watch for improved GAAP profitability and organic growth before expecting a stock rebound.
Cybersecurity stocks surged after IBM CEO Arvind Krishna highlighted cyber threats as a top concern for customers in the company's preliminary Q2 results. Krishna noted that some major deals were delayed as businesses reconsidered spending due to evo...
Zscaler's stock dropped sharply by 31.5% on May 27, 2026, after the company issued weaker-than-expected guidance and revealed disruptions linked to sales leadership changes. This decline followed concerns about slowing growth, weaker customer expansi...
