Jun. 18 at 3:30 PM
$ZS may be pricing in too much pessimism.
The stock is down roughly 60% from its high, yet the latest quarter showed 25% revenue growth, record margins, and backlog (RPO) up 30%.
The selloff was driven by softer FY27 ARR guidance and management changes, but the long-term zero-trust demand story hasn't changed.
If anything, the rise of AI agents only increases the need for cybersecurity.
The real question is whether this is a temporary sentiment reset or a long-term buying opportunity.
