Zscaler's stock has fallen almost 40% year-to-date due to broad software sector weakness and concerns about AI disruption. Despite this, the company shows no fundamental issues and is considered a good buy for dollar-cost averaging. AI competition poses some risk, but AI-driven workloads could benefit Zscaler. Additionally, recent security concerns around Anthropic reduce trust in competitors. Zscaler trades at a low valuation relative to future revenue and free cash flow projections, maintaining strong financial metrics like the Rule of 40.
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...
