Nokia Supercharges India's Broadband with Ishan Tech; Taps Zscaler To Upgrade Cloud Protection
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2024
0mins
Source: Benzinga
Nokia's Partnership with Ishan Technologies: Nokia Corporation has partnered with Ishan Technologies to enhance broadband services in Gujarat and Maharashtra, India, by deploying advanced network solutions that will automate operations and improve customer experiences for over 256,000 subscribers.
Security Enhancements with Zscaler: In addition to broadband improvements, Nokia is implementing Zscaler's Zero Trust Exchange platform to strengthen cybersecurity and streamline operations, ensuring secure connections across devices while reducing costs.
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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: 184.600
Low
260.00
Averages
325.62
High
390.00
Current: 184.600
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 is a cloud-native platform that securely connects users, devices, applications and workloads, including artificial intelligence (AI) agents, without relying on hub-and-spoke network architecture and firewall-centric security. 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. Its services include Zscaler Internet Access (ZIA), Zscaler Private Access (ZPA), and Zscaler Digital Experience (ZDX). ZIA provides secure access to externally managed applications, including SaaS applications and internet destinations, regardless of device, location or network.
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.
- Earnings Report Disappointment: Zscaler reported adjusted earnings of $1.08 per share and revenue of $850 million for the third quarter, surpassing expectations; however, its guidance for fiscal 2027 of only 16% to 17% year-over-year growth fell short of analyst estimates, leading to a 30% stock plunge.
- Leadership Changes Impact: The company lost two sales leaders during the quarter, and finance chief Kevin Rubin indicated that Zscaler is adopting a 'prudent approach' to guidance amid these transitions, which may undermine market confidence and future performance.
- Rising Capital Expenditures: Zscaler anticipates a 200 basis point increase in capital expenditures as a percentage of revenue for fiscal 2027, primarily due to memory shortages and rising costs, which will pressure profitability and further affect investor sentiment.
- Deteriorating Market Sentiment: Investor sentiment has soured towards cybersecurity stocks amid concerns that artificial intelligence could disrupt software business models; despite the rising threat landscape potentially increasing enterprise defense spending, Zscaler's stock remains under pressure.
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- Significant Stock Drop: Zscaler's stock fell approximately 15% in after-hours trading following the release of Q4 guidance that was below Wall Street expectations, with the total decline exceeding 30% by midday on May 27, severely impacting investor confidence.
- Poor Financial Outlook: While Zscaler reported Q3 revenue of $850 million, a 25% year-over-year increase, its Q4 revenue and cash-flow-margin guidance fell short of analyst expectations, raising concerns about the company's future growth prospects.
- Executive Departures Impact: The simultaneous disclosure of senior sales leadership departures heightened investor concerns regarding management stability, prompting several Wall Street analysts to downgrade the stock the following morning.
- Surge in Trading Volume: Amid the stock's decline, trading volume surged to three to four times the 30-day average, indicating heightened market scrutiny and anxiety regarding Zscaler's future performance.
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- Guidance Miss: Zscaler's Q4 revenue and cash-flow-margin guidance fell short of Wall Street expectations, causing the stock to drop approximately 15% in after-hours trading on May 26 and over 30% by midday on May 27, significantly undermining investor confidence.
- Strong Q3 Results: Despite reporting Q3 fiscal 2026 revenue of $850 million, a 25% year-over-year increase, and an ARR of $3.5 billion, concerns about future performance led to a sharp decline in stock price.
- Executive Departures: The simultaneous disclosure of senior sales leadership departures heightened market concerns regarding management stability, prompting several major Wall Street analysts to downgrade the stock the following morning.
- Surging Trading Volume: As the stock plummeted, trading volume surged to three to four times the 30-day average, indicating a strong investor reaction to the company's outlook, particularly against the backdrop of a broadly rallying cybersecurity sector, making Zscaler's decline more pronounced.
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- Market Performance: On Wednesday, the S&P 500 Index rose by 0.02%, the Dow Jones Industrial Average increased by 0.36% to a new record high, while the Nasdaq 100 fell by 0.09%, indicating a divergence in market sentiment amid enthusiasm for artificial intelligence and declining oil prices.
- Oil Price Fluctuations: Crude oil prices plummeted over 5% to a five-week low due to optimism surrounding a US-Iran peace deal, which eased inflation expectations and pushed the 10-year Treasury yield down to a 1.5-week low of 4.45%, providing support for the bond market.
- Mortgage Application Decline: US MBA mortgage applications fell by 8.5% for the week ending May 22, with the purchase mortgage sub-index down 0.4% and the refinancing sub-index down 18.1%, reflecting the dampening effect of high interest rates on housing demand, as the average 30-year fixed mortgage rate rose to 6.65%.
- Corporate Earnings Outlook: As of Wednesday, 83% of the 475 S&P 500 companies that reported Q1 earnings exceeded expectations, with projected earnings growth of 12% year-over-year, but excluding the technology sector, the growth is only 3%, indicating signs of overall earnings weakness.
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- Stock Fluctuation: Palo Alto Networks' shares fell 3.2% on Wednesday, with an intraday drop of 5.3%, as market sentiment was influenced by earnings reports from peers in the cybersecurity sector despite no specific news affecting the company.
- Zscaler Earnings Impact: Zscaler's quarterly results led to a 31.5% drop in its stock price, and while its adjusted earnings of $1.08 per share and revenue of $850.48 million exceeded Wall Street expectations, the weaker growth outlook raised concerns about overall cybersecurity valuations.
- Market Reaction: With a market cap of $210 billion, Palo Alto Networks' current share price stands at $248.51, and investor expectations remain high for its upcoming earnings report, projecting sales between $2.941 billion and $2.945 billion, indicating approximately 28.5% year-over-year growth.
- Future Outlook: Despite the sell-off triggered by Zscaler's report, Palo Alto Networks may still achieve significant sales and earnings growth in its upcoming report, yet investors are understandably cautious about potential stock price pullbacks following strong performance.
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- Stock Price Impact: Palo Alto Networks saw its stock decline by 3.2% on Wednesday, with an intraday drop of 5.3%, as the market reacted negatively to Zscaler's earnings report, indicating investor concerns about the overall outlook for the cybersecurity sector despite no specific negative news for Palo Alto.
- Zscaler Earnings Reaction: Zscaler reported non-GAAP earnings of $1.08 per share and revenue of $850.48 million, both exceeding Wall Street expectations; however, its stock plummeted by 31.5%, reflecting disappointment in future growth projections, which subsequently affected Palo Alto's market performance.
- Market Expectation Pressure: Palo Alto is set to release its Q3 2026 fiscal results on June 2, with high expectations for revenue growth of 28.5% to approximately $2.945 billion, yet investors are concerned about potential valuation pullbacks even if results exceed expectations, given the current market sentiment.
- Investor Confidence Shaken: Although Palo Alto remains up about 35% in 2026 trading, the fallout from Zscaler's report has led to increased skepticism regarding Palo Alto's future performance, especially after it failed to make the Motley Fool's list of top recommended stocks, further exacerbating market unease.
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