Why Zscaler Stock Crashed 10% This Morning
Shares of cybersecurity specialist Zscaler (NASDAQ: ZS) are falling today, down 10% as of 11 a.m. ET despite exceeding earnings estimates handily last night.
Heading into fiscal Q2 2023, analysts had forecast a $0.29-per-share profit on sales of $364.9 million -- and the company beat on both top and bottom lines. Sales came in well ahead of expectations at $387.6 million, while profits were a whopping $0.37 per share, or 27.5% more than predicted.
And yet, Wall Street was decidedly not happy with these numbers. At last report, no fewer than nine separate analysts had cut their price targets on Zscaler in response to last night's news, with most analysts guesstimating the stock to be worth somewhere between $135 and $155 a share. (For context, though, shares are currently selling for just over $120, so these estimates are generally continuing to maintain buy ratings for the stock.)
Source Fool.com
