Zscaler, Inc. Stock News

The cybersecurity market is well-insulated from economic downturns because companies generally won't turn off their digital defenses to save a few dollars. It should also continue expanding for at least the next decade as cyberattacks become increasingly frequent and sophisticated.

Technology not only helps to improve our lives but also provides us with easier access to our loved ones. The digitization wave has prompted individuals and corporations to embrace cloud computing, while the emergence of generative artificial intelligence (AI) has seen an explosion in new uses.

Nach dem KI-Hardware-Boom könnte nun das Software-Segment den Siegeszug antreten. Besonders interessant scheint das Thema Cybersecurity zu sein.

Cybercrime is on track to cause $10.5 trillion worth of damage to the global economy in 2025, according to Cybersecurity Ventures. More businesses are operating online than ever before, which leaves them vulnerable to attackers who can strike at any time of the day, and from anywhere in the world.

Zscaler (ZS 3.10%) investors may want to forget 2024. Shares of the cybersecurity specialist have dropped more than 10% so far this year due to concerns about its slowing growth, and the company seems set to enter 2025 on the back foot.

After a solid Q1, we think Zscaler stock (NASDAQ: ZS), a cloud-based security platform, is currently a better pick over its peer – F5 stock (NASDAQ: FFIV). ZS stock trades at 14x trailing revenues, versus 5x for FFIV stock, thanks to Zscaler's superior revenue growth.

While the market showed strong momentum through much of 2024, Zscaler (ZS -0.36%) hasn't followed suit and struggled to gain traction in 2024. The latest evidence of this came as share prices fell after the cybersecurity company released its fiscal 2025 first-quarter results.

Zscaler NASDAQ: ZS shares tanked more than 7% in premarket trading following its FQ1/CQ3 earnings report, opening a textbook buy-the-dip opportunity. The results failed to impress the analysts, but that is the only thing wrong with the report.