Thursday's ETF Movers: SILJ, HACK
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 07 2025
0mins
Should l Buy ZS?
Source: NASDAQ.COM
Performance of Amplify Cybersecurity ETF: The Amplify Cybersecurity ETF is underperforming, down approximately 3% in Thursday afternoon trading, with notable declines in shares of Fortinet (down 24.8%) and Zscaler (down 4.7%).
Market Commentary: The views expressed in the article are those of the author and do not necessarily reflect the opinions of Nasdaq, Inc.
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Analyst Views on ZS
Wall Street analysts forecast ZS stock price to rise
30 Analyst Rating
24 Buy
6 Hold
0 Sell
Strong Buy
Current: 170.900
Low
260.00
Averages
325.62
High
390.00
Current: 170.900
Low
260.00
Averages
325.62
High
390.00
About ZS
Zscaler, Inc. is a cloud security company. The Company has developed a platform incorporating core security functionalities needed to enable fast and secure access to cloud resources based on identity, context and an organization’s policies. Its Zscaler Zero Trust Exchange platform protects thousands of customers from cyberattacks and data loss by securely connecting users, devices, and applications in any location. Its solution is a purpose-built, multi-tenant, distributed cloud platform that incorporates the security functionality needed to enable users, applications, and devices to safely and efficiently utilize authorized applications and services based on an organization’s business policies. It delivers its solutions using a software-as-a-service (SaaS) business model and sells subscriptions to customers to access its cloud platform, together with related support services. It offers a security platform that combines its platform with automated security operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Cybersecurity Trends: Gartner identifies six major cybersecurity trends for 2026, including the migration to post-quantum cryptography and agentic AI oversight, highlighting a critical shift in enterprise security architecture that companies must adapt to in order to address emerging threats.
- Webinar Announcement: QSE Corp. is set to host a webinar on February 17, 2026, focused on post-quantum security, aimed at helping organizations understand the implications of quantum computing on traditional encryption methods and enhancing data security strategies, reflecting a growing awareness of post-quantum risks.
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- Extreme Price Volatility: Analysts point out that the extreme price action in software stocks has led to unrealistic expectations regarding AI disruption, which may prompt a rotation back into higher-quality companies, thereby improving portfolio performance.
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- Future Implications: Observers are watching closely to see how this development will affect the broader market.
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- IT Spending Surge: Gartner projects that global IT spending will reach $6.15 trillion by 2026, with data center expenditures exceeding $650 billion, indicating a significant acceleration in AI infrastructure investments by hyperscalers that will drive overall industry growth.
- Cybersecurity Trends: Gartner identifies six major cybersecurity trends for 2026, including the migration to post-quantum cryptography and agentic AI oversight, which will reshape enterprise security architecture and compel companies to strategically adjust their security technologies.
- Government Cloud Spending: Sovereign cloud IaaS spending is expected to reach $80 billion in 2026, a 35.6% increase, highlighting how geopolitical tensions are pushing governments toward domestically operated infrastructure to enhance data security and control.
- Educational Webinar: QSE Corp. is hosting a webinar on February 17, 2026, focusing on post-quantum security, aimed at helping organizations understand the impact of quantum computing on traditional encryption methods, reflecting growing awareness of post-quantum risks among enterprises.
See More
Global IT Spending to Reach $6.15 Trillion
- IT Spending Forecast: Gartner projects that global IT spending will reach $6.15 trillion in 2026, with data center expenditures exceeding $650 billion, indicating a significant acceleration in enterprise investments in AI infrastructure that is reshaping the industry landscape.
- Cybersecurity Trends: Gartner identifies six major cybersecurity trends for 2026, including the migration to post-quantum cryptography and agentic AI oversight, highlighting a critical shift in enterprise security architecture that companies must adapt to in order to address emerging threats.
- Webinar Announcement: QSE Corp. is set to host a webinar on February 17, 2026, focused on post-quantum security, aimed at helping organizations understand the implications of quantum computing on traditional encryption methods and enhancing data security strategies, reflecting a growing awareness of post-quantum risks.
- International Expansion: QSE has renewed its agreement with The Muthoot Group in India, covering approximately 14,000 user licenses, and has entered South America with a three-year security agreement supporting three Brazilian government clients, marking a rapid expansion of its global commercial footprint.
See More
Latest Wall Street Rating Updates
- Coinbase Rating Maintained: Bernstein reiterates Coinbase as outperform, noting that despite Q4 revenue missing estimates by 3% and a 28% drop in adjusted EPS to $0.66, the stock remains undervalued, indicating long-term optimism.
- Instacart's Strong Performance: Barclays maintains an overweight rating on Instacart, highlighting its rare beat-and-raise earnings report in the internet earnings cycle, suggesting a unique advantage in a competitive market that may attract more investor interest.
- Airbnb Upgraded to Buy: Deutsche Bank upgrades Airbnb from hold to buy, stating that while it faces AI disruption risks, its unique supply chain offers more insulation compared to peers, which is likely to draw more investor attention.
- CrowdStrike's Attractive Valuation: HSBC upgrades CrowdStrike from hold to buy, citing attractive current valuation and projecting a non-GAAP EPS CAGR of 38.3% over FY26-29, indicating strong growth potential.
See More
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- Market Rebound Expectations: JPMorgan believes that while the market's outlook on AI disruption in the software sector is overly pessimistic, certain software companies are demonstrating greater resilience, potentially providing rebound opportunities for investors, especially given the current overly bearish sentiment.
- Extreme Price Volatility: Analysts point out that the extreme price action in software stocks has led to unrealistic expectations regarding AI disruption, which may prompt a rotation back into higher-quality companies, thereby improving portfolio performance.
- AI Profitability Gains: Companies in the S&P 500 that have adopted AI have seen net margins expand by approximately 2 to 3 percentage points more than their peers, indicating that AI technology is already delivering productivity gains and reflecting that corporate adoption is enhancing profitability.
- ETF Performance Decline: The State Street SPDR S&P Software & Services ETF (NYSE:XSW) is down 20.58% year-to-date, illustrating the overall pessimistic sentiment towards the software sector, despite some companies potentially benefiting from AI infrastructure demand.
See More
Reasons Software Stocks May Experience a Short Squeeze
- Software Stocks: There is an indication that software stocks are preparing for a potential short squeeze.
- Market Dynamics: This situation suggests a shift in market dynamics that could impact stock prices.
- Investor Sentiment: The potential for a short squeeze may influence investor sentiment and trading strategies.
- Future Implications: Observers are watching closely to see how this development will affect the broader market.
See More
Software Companies Face AI Disruption
- Market Reaction Analysis: Following the launch of Anthropic's Claude Cowork, software companies like Shopify, Monday.com, and Fastly saw stock declines of 23%, 15%, and 16% respectively, indicating investor concerns over AI potentially replacing traditional software, which may lead to a reevaluation of investment strategies.
- Industry Trend Observation: Despite surging AI spending and major players like Meta and Alphabet pushing forward, the future of software companies remains uncertain, particularly for those reliant on single-function products, which may face greater risks of obsolescence.
- Job Market Dynamics: Recent data shows that January layoffs reached the highest level since 2009, with job openings falling to the lowest since 2020, reflecting adjustments in labor demand as companies navigate economic recovery, potentially linked to the rise of AI technologies.
- Investment Strategy Adjustment: Analysts recommend focusing on mission-critical software companies like CrowdStrike and Toast, which may remain stable amid the AI wave due to their essential business functions, urging investors to be selective in navigating market volatility.
See More
