Zscaler breaks the scale with the weight of bloated valuation
I love the company. I love its cool name. I love its growth. But yesterday’s add of FTNT (and its rich valuation) aside, I try to be sensitive about valuation.
Every time I looked at ZS and its nosebleed valuation I just had to say no thanks. I think I last owned it in those halcyon days of 2020. Today it’s getting croaked after beating on earnings, but not by enough and after not guiding well enough.
At some point Cathy Wood will probably step in for the buying opportunity. But for those of us at least conscious of valuation it might be good to let it breathe a little. Support could be found just below 200, but there’s a gap at 175.
This is where people who think the stock market is one big casino get punished. ZS was a great stock tip in 2020 and 2021. But great companies are usually priced as such, and then some.
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