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: 154.670
Low
260.00
Averages
325.62
High
390.00
Current: 154.670
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.
Okta Surpasses Q4 Estimates Amid AI Demand
- Earnings Beat: Okta reported adjusted earnings per share of 90 cents for Q4, exceeding the expected 85 cents, with revenue of $761 million surpassing the $749 million forecast, indicating strong performance in identity management despite market pressures.
- Revenue Growth: The company achieved an 11% year-over-year revenue increase, with net income reaching $63 million, showcasing its significant market share gains in the rapidly growing AI security demand, thereby enhancing its competitive position in the identity market.
- Cautious Outlook: Despite a strong Q4, Okta's first-quarter guidance fell short of analyst expectations, projecting revenue between $749 million and $753 million, reflecting management's prudent approach to market conditions, which may impact short-term investor confidence.
- Subscription Backlog Increase: Remaining performance obligations rose 15% year-over-year to $4.83 billion, exceeding the StreetAccount estimate of $4.62 billion, indicating a healthy long-term contract status and enhancing revenue predictability for the future.
See More
Escalating Cyberattack Threat from Iran Amid U.S. Tensions
- Protests Escalate: Hundreds of Iraqi Shiites protested in Baghdad against U.S. and Israeli strikes on Iran, indicating a rise in regional tensions that could lead to larger conflicts and instability.
- Increased Cyberattack Risk: Cybersecurity experts warn that Iran may launch attacks on U.S. businesses and infrastructure at a high-risk moment, highlighting the rising potential for cyber threats against critical sectors.
- CISA Challenges: The Cybersecurity and Infrastructure Security Agency (CISA) faces significant challenges due to a partial government shutdown and management reshuffle, resulting in staff shortages and resource constraints that may weaken its ability to counteract cyber threats.
- Financial Sector Vigilance: JPMorgan Chase's CEO noted that banks could be targets for cyberattacks, anticipating an increase in global cyber or terrorist threats, which underscores the financial industry's heightened focus on cybersecurity.
See More
Surge in Options Trading Volume for Strategy Inc and Zscaler
- Options Volume for Strategy Inc: Strategy Inc (Symbol: MSTR) saw an options trading volume of 240,003 contracts today, representing approximately 24 million underlying shares, which is about 94% of its average daily trading volume of 25.5 million shares over the past month, indicating strong market interest in the stock.
- High Demand for Call Options: Among MSTR options, the $140 strike call option has been particularly active, with 8,561 contracts traded today, equating to approximately 856,100 shares, reflecting investor optimism regarding future price increases.
- Zscaler Options Activity: Zscaler (Symbol: ZS) has recorded an options trading volume of 26,151 contracts today, representing about 2.6 million underlying shares, which accounts for 70.4% of its average daily trading volume of 3.7 million shares over the past month, showing sustained market interest in its stock.
- Active Trading in Put Options: For ZS, the $270 strike put option has seen a trading volume of 7,600 contracts today, representing approximately 760,000 shares, indicating a cautious sentiment among investors regarding potential future price declines.
See More
Wells Fargo Initiates Overweight Rating on Zscaler
- Market Position Strengthened: Wells Fargo analysts highlighted Zscaler's entrenched position in the large enterprise market, capturing 45% of the Fortune 500, 40% of the Global 2000, and 20% of enterprises with over 2,000 employees, showcasing its strong competitive edge in the cloud security sector.
- New Customer Opportunities: Analysts project that Zscaler could generate $300-400 million annually through approximately 700 new logos, indicating significant potential for market share expansion, while concerns about market saturation are viewed as overstated.
- AI-Driven Demand Surge: As enterprises increasingly focus on data sovereignty, Zscaler's solutions like DLP are becoming essential, further deepening its wallet share within existing accounts, highlighting the critical role of AI technology in driving data security demand.
- Price Target Set: Wells Fargo has established a $200 price target for Zscaler, reflecting confidence in its future growth potential and indicating a positive outlook for the cloud security market.
See More
Two Troubling Investments: The Case for Why Palo Alto and Zscaler Are Great Bargains
Market Trends: Cybersecurity stocks like Palo Alto Networks and Zscaler have seen significant declines, with potential for rebound as the industry is expected to grow at a compound annual growth rate of 10-15% over the next decade.
Investment Opportunities: Analysts suggest that despite current valuation concerns, Palo Alto and Zscaler are well-positioned for long-term growth, with forecasts indicating substantial upside potential for investors.
Market Sentiment: Recent trading volumes and price actions indicate a shift towards bullish sentiment, suggesting that the market may have reached a bottom, providing a favorable environment for investment.
Analyst Recommendations: Analysts are advising clients to consider buying these stocks now, as they believe these companies represent some of the best investment opportunities in the cybersecurity sector.
See More
Iran Faces Severe Internet Blackout Amid Conflict
- Current Internet Blackout: Iran is experiencing a near-total internet blackout lasting over 48 hours amid ongoing conflict with the U.S. and Israel, with connectivity at just 1% of normal levels, severely impacting over 90 million citizens and highlighting the government's strict control over information flow.
- Historical Context: NetBlocks attributes this blackout to a 'regime-imposed' nationwide shutdown, reminiscent of a similar incident in January that lasted weeks and obscured severe human rights violations, indicating the government's tendency to employ such tactics during public protests to maintain control.
- Cyber Attack Threats: U.S. and Israeli cyberattacks have targeted Iranian internet infrastructure, with multiple government-aligned news websites hacked, and even the popular religious calendar app BadeSaba, with over 5 million downloads, compromised, indicating a psychological warfare strategy against the populace.
- Potential Cyber Retaliation: As Iran retaliates with strikes against U.S. and allied targets, analysts warn that Iranian-aligned groups may initiate cyber attacks, with CrowdStrike's head noting observed activities consistent with Iranian threat actors, suggesting that more aggressive cyber operations may be forthcoming.
See More
Okta Surpasses Q4 Estimates Amid AI Demand
- Earnings Beat: Okta reported adjusted earnings per share of 90 cents for Q4, exceeding the expected 85 cents, with revenue of $761 million surpassing the $749 million forecast, indicating strong performance in identity management despite market pressures.
- Revenue Growth: The company achieved an 11% year-over-year revenue increase, with net income reaching $63 million, showcasing its significant market share gains in the rapidly growing AI security demand, thereby enhancing its competitive position in the identity market.
- Cautious Outlook: Despite a strong Q4, Okta's first-quarter guidance fell short of analyst expectations, projecting revenue between $749 million and $753 million, reflecting management's prudent approach to market conditions, which may impact short-term investor confidence.
- Subscription Backlog Increase: Remaining performance obligations rose 15% year-over-year to $4.83 billion, exceeding the StreetAccount estimate of $4.62 billion, indicating a healthy long-term contract status and enhancing revenue predictability for the future.
See More
Escalating Cyberattack Threat from Iran Amid U.S. Tensions
- Protests Escalate: Hundreds of Iraqi Shiites protested in Baghdad against U.S. and Israeli strikes on Iran, indicating a rise in regional tensions that could lead to larger conflicts and instability.
- Increased Cyberattack Risk: Cybersecurity experts warn that Iran may launch attacks on U.S. businesses and infrastructure at a high-risk moment, highlighting the rising potential for cyber threats against critical sectors.
- CISA Challenges: The Cybersecurity and Infrastructure Security Agency (CISA) faces significant challenges due to a partial government shutdown and management reshuffle, resulting in staff shortages and resource constraints that may weaken its ability to counteract cyber threats.
- Financial Sector Vigilance: JPMorgan Chase's CEO noted that banks could be targets for cyberattacks, anticipating an increase in global cyber or terrorist threats, which underscores the financial industry's heightened focus on cybersecurity.
See More
Surge in Options Trading Volume for Strategy Inc and Zscaler
- Options Volume for Strategy Inc: Strategy Inc (Symbol: MSTR) saw an options trading volume of 240,003 contracts today, representing approximately 24 million underlying shares, which is about 94% of its average daily trading volume of 25.5 million shares over the past month, indicating strong market interest in the stock.
- High Demand for Call Options: Among MSTR options, the $140 strike call option has been particularly active, with 8,561 contracts traded today, equating to approximately 856,100 shares, reflecting investor optimism regarding future price increases.
- Zscaler Options Activity: Zscaler (Symbol: ZS) has recorded an options trading volume of 26,151 contracts today, representing about 2.6 million underlying shares, which accounts for 70.4% of its average daily trading volume of 3.7 million shares over the past month, showing sustained market interest in its stock.
- Active Trading in Put Options: For ZS, the $270 strike put option has seen a trading volume of 7,600 contracts today, representing approximately 760,000 shares, indicating a cautious sentiment among investors regarding potential future price declines.
See More
Wells Fargo Initiates Overweight Rating on Zscaler
- Market Position Strengthened: Wells Fargo analysts highlighted Zscaler's entrenched position in the large enterprise market, capturing 45% of the Fortune 500, 40% of the Global 2000, and 20% of enterprises with over 2,000 employees, showcasing its strong competitive edge in the cloud security sector.
- New Customer Opportunities: Analysts project that Zscaler could generate $300-400 million annually through approximately 700 new logos, indicating significant potential for market share expansion, while concerns about market saturation are viewed as overstated.
- AI-Driven Demand Surge: As enterprises increasingly focus on data sovereignty, Zscaler's solutions like DLP are becoming essential, further deepening its wallet share within existing accounts, highlighting the critical role of AI technology in driving data security demand.
- Price Target Set: Wells Fargo has established a $200 price target for Zscaler, reflecting confidence in its future growth potential and indicating a positive outlook for the cloud security market.
See More
Two Troubling Investments: The Case for Why Palo Alto and Zscaler Are Great Bargains
Market Trends: Cybersecurity stocks like Palo Alto Networks and Zscaler have seen significant declines, with potential for rebound as the industry is expected to grow at a compound annual growth rate of 10-15% over the next decade.
Investment Opportunities: Analysts suggest that despite current valuation concerns, Palo Alto and Zscaler are well-positioned for long-term growth, with forecasts indicating substantial upside potential for investors.
Market Sentiment: Recent trading volumes and price actions indicate a shift towards bullish sentiment, suggesting that the market may have reached a bottom, providing a favorable environment for investment.
Analyst Recommendations: Analysts are advising clients to consider buying these stocks now, as they believe these companies represent some of the best investment opportunities in the cybersecurity sector.
See More
Iran Faces Severe Internet Blackout Amid Conflict
- Current Internet Blackout: Iran is experiencing a near-total internet blackout lasting over 48 hours amid ongoing conflict with the U.S. and Israel, with connectivity at just 1% of normal levels, severely impacting over 90 million citizens and highlighting the government's strict control over information flow.
- Historical Context: NetBlocks attributes this blackout to a 'regime-imposed' nationwide shutdown, reminiscent of a similar incident in January that lasted weeks and obscured severe human rights violations, indicating the government's tendency to employ such tactics during public protests to maintain control.
- Cyber Attack Threats: U.S. and Israeli cyberattacks have targeted Iranian internet infrastructure, with multiple government-aligned news websites hacked, and even the popular religious calendar app BadeSaba, with over 5 million downloads, compromised, indicating a psychological warfare strategy against the populace.
- Potential Cyber Retaliation: As Iran retaliates with strikes against U.S. and allied targets, analysts warn that Iranian-aligned groups may initiate cyber attacks, with CrowdStrike's head noting observed activities consistent with Iranian threat actors, suggesting that more aggressive cyber operations may be forthcoming.
See More
