Zscaler Acquires SquareX to Enhance Security Capabilities
Zscaler Inc. shares rose 5.03% as the stock reached a 5-day high, reflecting positive investor sentiment following recent developments.
The core catalyst for this movement is Zscaler's acquisition of SquareX, which aims to enhance its zero trust security capabilities. This strategic move allows organizations to deploy lightweight browser extensions directly within standard browsers, eliminating the need for third-party enterprise browsers or full security agents. This acquisition is expected to significantly bolster Zscaler's competitive edge in the rapidly evolving AI landscape.
The implications of this acquisition are substantial, as it positions Zscaler to better meet the growing demand for advanced security solutions in an increasingly digital world. Investors are likely to view this acquisition as a positive step towards strengthening Zscaler's market position.
Trade with 70% Backtested Accuracy
Analyst Views on ZS
About ZS
About the author

- Strong Economic Data: US December capital goods new orders rose 0.6% month-over-month, exceeding expectations of 0.3%, indicating a rebound in capital spending that could further boost stock markets.
- Housing Market Recovery: December housing starts increased by 6.2% month-over-month to 1.404 million, significantly surpassing the expected 1.304 million, suggesting a recovery in the real estate market that may enhance investment confidence in related sectors.
- Manufacturing Production Growth: January manufacturing production rose 0.6% month-over-month, beating expectations of 0.4%, marking the largest increase in 11 months, which could strengthen market confidence in economic recovery.
- Optimistic Corporate Earnings: Over 75% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, reflecting ongoing improvements in corporate profitability that may further drive stock market gains.
- Stock Market Volatility: Individual stock returns have been inconsistent, creating potential buying opportunities for investors.
- Investment Opportunities: Cybersecurity and financial services sectors are highlighted as promising areas for investment.
- Market Volatility Expected: The ongoing rotation among investors suggests that market volatility will persist, and while Marvell Technology's recent pullback may seem excessive, its growth potential in the AI sector remains promising.
- Investment Recommendation: Although Marvell Technology was not included in the current top stock picks by The Motley Fool Stock Advisor, its unique position in AI technology, particularly in relation to partnerships with Nvidia and Intel, warrants attention.
- Historical Returns Comparison: Data from The Motley Fool indicates that previously recommended stocks like Netflix and Nvidia yielded returns of 414,554% and 1,120,663% respectively, highlighting the significant long-term investment value of their recommendations.
- Investor Community: Joining The Motley Fool's investor community provides access to the latest top 10 stock recommendations; while Marvell Technology is not among them, its potential market performance continues to attract investor interest.
- Market Volatility Analysis: All five stocks discussed have experienced varying degrees of pullback, and this volatility is expected to continue in the foreseeable future as investors rotate their assets.
- Overdone Sell-off Assessment: Despite the market pressure, the sell-off of certain stocks appears overdone, and analysts believe these stocks remain attractive for inclusion in investment portfolios, particularly Marvell Technology.
- Marvell Technology Growth Potential: As an AI-focused company, Marvell Technology has gone through significant ups and downs, yet its growth trajectory is still viewed positively, indicating potential for long-term investment.
- Video Content Recommendation: The video will delve deeper into the performance of these stocks, encouraging viewers to subscribe to the channel and check out the special offer in the link below for more investment insights.
- 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.
- 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.











