Summary Zscaler and Crowdstrike are leaders in two different segments of the cyber security space. Both companies have achieved rapid growth, with the advantage slightly to Crowdstrike recently. Both companies are achieving significant free cash flow margins. Zscaler shares have seen a material valuation compression, both on a relative and absolute basis. At this point…
This has not been the easiest of weeks to be an investor in tech stocks. Sentiment, as I have mentioned, is woeful, and analysts are looking under every bush and rock for negatives. Technical analysis that I have seen, is decidedly negative which is, of course, the outcome of negative sentiment. The cyber security software…
Sale of 100 shares of Crowdstrike at the opening; Sale of 100 shares of DT at the opening; Purchase of 120 shares of CyberArk at the opening, Purchase of 40 shares of Datadog; Comments on the ZS downgrades As we discussed in the portfolio commentary we published yesterday, we are exiting our Crowdstrike position. The…
Sales of 100 shares of Veeva (entire position); 200 shares of Procore and 320 Nutanix-Total Sales of Purchase of 300 shares of UiPath; 500 Shares of Nu Holdings; 633 shares of Pagaya; 400 shares of SentinelOne and 30 shares of Zscaler As we indicated in the post we sent on Thursday, we decided to make…
Summary Zscaler shares have fallen due to concerns about slowing growth and potential margin pressures. However, the company’s earnings presentation and guidance were misread, and it remains a significant share gainer in the zero trust/SASE space. Demand for cybersecurity solutions continues to grow, and Zscaler is well-positioned to benefit from this trend. Zscaler has unveiled…
At the close Friday afternoon, we made 2 purchases. We added 65 shares to our Zscaler position. That brings our holding of Zscaler to 350 shares, which is a weight of about 7.6%, Earlier on Friday we composed a review of the Zscaler quarter and what we thought was going on with the stock. The…
Zscaler Zscaler reported its results last evening. By most standards the results were everything that most investors look for in a hyper growth company. Revenues, billings, bookings, earnings and free cash flow margin were all beats. The company really only forecasts revenues and EPS on a quarterly basis; it raised its expectations for those metrics.…
Sale of remaining position in ZoomInfo; Purchase of 55 Shares of Zscaler, 300 shares of SentinelOne, and 2050 shares of Pagaya We made some portfolio changes this morning. We eliminated the last of our ZoomInfo position, selling 1000 shares at $17.99 which netted approximately $17,990. We augmented 3 positions, those of Zscaler, SentinelOne and Pagaya.…
I think all of us have been disappointed by the trading action in the high growth IT space thus far in August. Consolidations are uncomfortable, and this one is being compounded, I believe by the spike in long rates, whether or not justified. I will take a bit more look at the course of long…
Microsoft announced what it calls Entra SASE, a solution that is designed to compete with modern security offerings from Zscaler, Palo Alto and Cloudflare. The announcement includes two specific solutions: Entra Internet Access, which is a secure web gateway for SaaS apps and internet traffic as well as Entra Private Access. Internet Access will be…