Hey Global Investor, here’s what you need to know before the US markets open.
Market Snapshot 📈
S&P 500 (Tuesday’s Close) 4,188.13 -8.92 (0.21%)
NASDAQ (Tuesday’s Close) 13,657.17 -4.00 (0.02%)
FTSE 100 (5 PM IST) 7,016.01 -13.78 (0.20%)
NIFTY 50 (Today’s Close) 15,301.45 +93.00 (0.61%)
USDINR (Today’s Close) 72.72 (1 Year -3.68%)
🔥 Top Movers
🕴 Zscaler: The A-to-Z Of Cybersecurity?
Cyber-security firm Zscaler’s (ZS) Q3 results beat estimates. To keep up with growth, Zscaler is acquiring an Indian entity in order to enhance its cybersecurity offering. In keeping with the momentum, the company also raised its guidance for the rest of the year. (Tweet This)
As Cyber-Crimes Grow, So Does The Stock…
California-based Zscaler was launched in 2007 by two Indian-Americans K. Kailash and Jay Chaudhry. The company provides an architectural approach to securing IT infrastructure by leveraging software-defined policies. In other words, it does not rely on networks to connect the right user to the right app or service.
Global losses from cybercrimes stood at nearly $1T in 2020, nearly double the $500B lost in 2018. The cybercrime landscape has shifted from targeting specific machines or users to entire organizations. Recent data breaches at Twitter, Marriott, MGM, Zoom are proof that no one is immune.
Zscaler has managed to stand its ground and carve out a niche for itself in spite of powerful incumbents such as McAfee, Kaspersky, and Cisco. Its cloud-delivered services are used in more than 185 countries. Zscaler went public in 2018 at $16 per share. Three years later, the shares have returned 10X. This after a substantial correction from the February peak of $230.
Two Months – Two Acquisitions
Zscaler’s Q3 results were comfortably ahead of what Wall Street analysts were projecting.
Key Stats for Q3:
Revenue: $176.4M Vs $163.7M expected
EPS: $0.15 Vs $0.07 expected
Billings: $225M Vs $183.3M expected
For Q4, the company expects revenue of $186M Vs. $174.4M expected.
In April, Zscaler acquired Trustdome to enhance its cloud protection capabilities. Yesterday, the company had announced the acquisition of India-based Smokescreen Technologies, a leader in active defense and deception technology. The terms of this deal were undisclosed.
The company has also announced its partnership with IBM Security to assist organizations with modernizing network security. This alliance comes at a time when companies across the globe are facing increased threats of cyber-attacks. Just last year, global spend on cybersecurity stood at $145B and is expected to grow at 11% CAGR through 2028.
Work from home has increased the need for organizations to remain ever vigilant. Zscaler, for its part, seems determined to ensure the cybersecurity walls of its clients are unbreachable – be they at home or in the office.
ZS ended the day at $172.74, down 0.95%. The stock surged 8.4% in after-hours trading to $187.25.
Company Snapshot 📈
ZS $172.74 -1.66 (0.95%)
Analyst Ratings (27 Analysts) BUY 70% HOLD 30% SELL 0%
Later Today 🕒
- NVIDIA Corporation Earnings (NVDA)
- Snowflake Inc. Earnings (SNOW)
- Amazon’s Annual General Meeting (AMZN)
- Facebook’s Annual General Meeting (FB)
- Paypal’s Annual General Meeting (PYPL)
Fun Fact of The Day 🌞
The iPad 2 would cost $1,140 if it were made in America