The stock market extended impressive streaks on Friday as it recorded this year’s longest winning streak of six straight weeks of gains. The strong earnings from big banks to kick off earnings seasons has laid the groundwork Big Tech’s corporate results in the coming days.
Overall, S&P 500 rose 0.4% to 5,865, while NASDAQ increased 0.6% to 18,490.
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Chart of the Day
Here is the one-year chart of Zscaler (ZS) as of September 25, 2024, when the stock was at $172.
Zscaler delivered another impressive results due to the growing use of AI and Zero Trust technology adoption. The cybersecurity giant reported 38% year-over-year profit growth on a 30% increase in revenue.
Management highlighted a milestone $1 billion in quarterly bookings, driven by a combination of new and upsell business reflecting growing demand for Zscaler’s Zero Trust Exchange Platform. As more people use Generative AI (GenAI), new cybersecurity problems are popping up, and Zscaler is stepping in with AI-driven solutions to help solve them. AI contributed to 3% of new and upsell business last quarter and is expected to drive future growth as the company expands its capabilities.
Meanwhile, demand for Zscaler’s Zero Trust platform is at an all-time high, with 47 million users across 8,700 customers. The company is seeing growth with big businesses, as they are replacing old security systems with Zscaler’s all-in-one platform. But the stock fell after management stated billings growth will be around 13% in the next two quarter, then accelerate to 22% afterwards.
ZS is part of our Growth Portfolio.
