The stock market closed in the green on Monday, driven by tech stocks rally following a surprise U.S. tariff exemption announced by President Donald Trump.
Smartphones, computer as well as other devices and components such as semiconductors, were exempted from Trump’s tariffs.
Overall, S&P 500 was up 0.8% to 5,406, while NASDAQ increased 0.6% to 16,831.
Tweet of the Day
This is Bullish https://t.co/tWYFkD5OK0
— David Sharek (@GrowthStockGuy) April 12, 2025
Chart of the Day
Here is the one-year chart of Zscaler (ZS) as of March 24, 2025, when the stock was at $210.
Last quarter, Zscaler managed to deliver strong revenue growth, despite marginal profit growth. The company delivered 3% profit growth on 23% revenue growth, driven by large enterprise adoption and increased demand for Zero Trust security solutions.
Billings growth came in at 25% year-over-year (YoY), up from 13% 2QtrsAgo, signaling solid business momentum.
Last quarter, 57% of customers who purchased Zero Trust Branch were new logo clients. Meanwhile, customer count on large customers posted a 25% growth YoY. However, the company faces increasing competition from Palo Alto Networks (PANW), CrowdStrike (CRWD), and Microsoft (MSFT), which are aggressively expanding their security offerings.
Overall, David Sharek thinks one of Zscaler’s biggest challenges is pricing pressure in the cybersecurity space. While it has traditionally been the go-to solution for Zero Trust security, customers now have more options as rivals bundle security solutions at competitive prices.
ZS was sold from our Growth Portfolio to make room for an up-and-comer in the cybersecurity space.
