By Kuldip K. Ambastha
The stock price of Zscaler, Inc. (ZS), a cloud security company, dropped by -10.7% per share on the trading day of Friday, December 2, 2022. In its latest quarterly results, Zscaler surpassed expectations when it came to earnings and revenues. However, the expected billings figure for the full year is lower than what Wall Street was hoping for, and thus the stock price declined sharply upon this realization. While the company has benefited from increased demand for cybersecurity offerings, it and many other technology companies have struggled in the face of an expected worldwide recession. Zscaler is seeing a longer sales cycle than compared with the past, as potential clients are reluctant to sign contracts as global economic conditions weaken.
Keywords – Zscaler, Inc., Zscaler, ZS, technology, tech, cloud security, cybersecurity, Wall Street, earnings, revenues, billings, demand, recession, sales.
Disclosure – The principals and clients of Ambastha Financial LLC have no positions in ZS.
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