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zscaler stock drop

But Zscaler is making changes to its sales team (read: hiring more staff) as CEO Jay Chaudhry said his company is "focused on improving our sales execution to take Zscaler beyond $1 billion in revenue."

Zscaler stock fell 5.6% to close at 49.85 on the stock market today. Given the projected sales trajectory, Zscaler might be fairly valued -- although other cloud firms similarly priced using the price-to-sales ratio like Stock Advisor launched in February of 2002.

"For the current quarter, however, Zscaler told investors to expect revenue of $97 million to $100 million -- up just 33% at the midpoint and marking a significant sequential deceleration -- with adjusted earnings of $0.03 per share.For the full year, the company is targeting revenue of $405 million to $413 million -- up 35% year over year -- and adjusted net income per share of $0.13 to $0.15.Of course, it certainly didn't help that shares had rallied nearly 30% from their October lows heading into last month's report, leaving the market unwilling to forgive Zscaler's light guidance at the time.That said, Zscaler also has a tendency to underpromise and overdeliver. And even with a 43% drop … Granted, included in those expenses is a grand total of $18.4 million awarded in stock-based compensation -- which goes down as a noncash expense. So perhaps unsurprisingly, shares have also rallied hard along with the broader market so far in 2020, indicating opportunistic investors might be taking advantage of the beaten-down stock with the hope its fiscal second quarter report -- which should be released in late February or early March -- could bring good news.

For starters, it's another slowdown. Retirement The bar has been set high, and shareholders have grown accustomed to more robust expansion from the cloud security firm.

Investing Basics

Zscaler Chairman and CEO Jay Chaudhry lauded the company's strong top-line growth and (adjusted) profitability even "while significantly investing in our business to pursue our large market opportunity. Nevertheless, it's important to remember that the stock has years' worth of growth (or much higher growth for this coming year, take your pick) priced in already. Personal Finance Q4 2019 sales notched a 53% rate, and Zscaler's guidance upgrade for 2020 (35% growth at the midpoint) still implies a sharp drop-off at some point this year. If Zscaler can show notable progress in its efforts to capture more of the "large market opportunity" Chaudhry described, the stock could have plenty of room to run from here.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. "It will be more 'strap in' than 'exhale and expect something to …

Keeping this in mind, let's take a look at whether Zscaler… Shares are going for 383 times fiscal 2020 expected adjusted earnings per share, so profitability isn't a reliable tool. Cumulative Growth of a $10,000 Investment in Stock AdvisorZscaler Stock Might Be in Trouble, and Competition Is the Culprit @themotleyfool #stocks $ZS $FTNT $PANW Show full articles without "Continue Reading" button for {0} hours.

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As a start-up grows, operating expense growth is supposed to moderate relative to revenue growth.

Plus, as sales decelerate -- perhaps quickly if management doesn't deliver more big earnings beats in subsequent quarters -- operating expenses are still soaring. In these volatile markets we scrutinize hedge fund filings to get a reading on which direction each stock might be going. Nicholas has been a writer for the Motley Fool since 2015, covering companies primarily in the consumer goods and technology sectors. Adjusted for costs such as stock compensation, the company made a small profit of $6.1 million, compared with a …

In intraday trading, it dropped more than 10% at one point. A lot of factors can contribute to that scenario, but for cybersecurity upstart That's not to say that the report card from the fiscal 2020 first quarter was a bad one. Zscaler, Inc. operates as a cloud security company worldwide.

Zscaler Inc (NASDAQ:ZS) is down 2.2% to trade at $119.66 today, taking a breath after an earnings-fueled rally sent the stock skyrocketing to an all-time high of … After all, the newsletter they have run for over a decade, David and Tom just revealed what they believe are the US coronavirus: Follow measures or risk the worst fall in history, CDC says6 national restaurant chains in deepest trouble amid COVID-19 include Outback Steakhouse, IHOP and Denny's #Zscaler #stock recovery stumbles after outlook disappoints #WallStreet. More grim job losses as U.S. hits record high on new COVID cases.

(TMFnrossolillo) Data from the Stock Trader's Almanac shows the S&P 500 averages a loss of 0.5% in September. See you at the top!

He enjoys the outdoors up and down the West Coast with his wife and their Humane Society-rescued dog. Zscaler's stock remains at about three times the price it … Yet the stock price dropped by 6% after these better-than-expected earnings. Volatility is common with small, fast-growing firms like this, and things can change for the better real quick. About Us Shares were down as much as 10% the day after the news. So what's wrong with 48% top-line growth? Let's conquer your financial goals together...faster. That isn't happening here. By Cromwell Schubarth – TechFlash Editor, Silicon Valley Business Journal . He is also the founder and president of Concinnus Financial, a Registered Investment Advisor based in Spokane, WA. Returns as of 08/13/2020. Zscaler Inc.'s (Nasdaq:ZS) stock price has fallen roughly 46% from its 52-week high, mostly due to multiple adjustments and lower-than-expected guidance.Despite the big drop …

Why Zscaler Stock Dropped 10.8% In December Steve Symington 1/10/2020.

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