Past performance does not predict future results. Informational only, not investment advice.
Author is bullish on ZScaler calls and believes the stock will move higher, suggesting call holders will profit from upside movement.
Zscaler pioneered zero trust security and maintains strong 25%+ revenue growth with expanding operating margins, but trades at 6.24x forward price-to-sales, a third of its industry's 19.35x multiple. The 30% single-day drop after cautious guidance appears to be market overreaction given the company's continued platform adoption and AI Security Suite momentum, offering significant upside to enterprise security investors willing to ride out near-term uncertainty.
Author is bearish on Zscaler (ZS) and expects it to be pressured on Thursday due to NASDAQ 100 exclusion announcement.
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