Jan. 14 at 7:13 PM
$ZS Check out these returns for cybersecurity firms: most are negative in YTD 2026. The 1Y return is mediocre except for
$CRWD and Cloudflare (once again, not really cybersecurity proper). CRWD is now huge at
$120B in market cap and the law of large numbers apply ==> lower returns.
$PANW barely earned its cost of equity TTM. ZS, despite the big fall in Nov. 2025, still managed 16%. The rest are mediocre. Conclusion: the industry is maturing. 3Y returns are good but growth has stalled and the returns are beginning to approximate their costs of equity (11-18%).
