The stock market rallied on Friday, led by strong gains in the tech sector.
Given that, NASDAQ was up 2.7% to 11,140 and was the outperformed of the week. Meanwhile, S&P 500 grew 1.9% to 3,973.
Tweet of the Day
$GTLB If you’ve followed me you know $GTLB never interested me because they are up against a very formidable competitor GitHub & I had written why.
What’s GitLab’s answer to GitHub Copilot 👨✈️? Mission Impossible! https://t.co/pvjlvCymoZ
— FinXKing (@ronjonbSaaS) January 20, 2023
Chart of the Day
Our chart of the day is the one-year chart of Zscaler (ZS) as of December 28, 2022, when the stock was at $108.
Zscaler is the largest in-line cloud security platform in the world, processing more than 210 billion transactions daily, while preventing greater than 7 billion security incidents and policy violations. The company is delivering strong growth within US government agencies.
ZS stock has been weak as billings growth and revenue growth are slowing a bit. Company management blamed the slowdown on broader macrochallenges and economic uncertainties. Billings grew only 37% during the qtr versus tough comparisons of 71% growth a year ago. Billings jumped 57% 2QrtsAgo, so this was technically slowing growth.
The stock’s Estimated Long-Term Growth Rate of 53% a year is outstanding. When this stock bottoms, David Sharek, Founder of The School of Hard Stocks, expects it to climb at the rate sales do, which could be 35%-plus per year.
ZS is part of the Aggressive Growth Portfolio.
