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Today’s Stock Action Proves We’re Still in a Bear Market

Today’s stock action proves we’re still in a Bear Market.

Overall, the S&P 500 closed down 2.0% on the day to close at 3820 as investors comprehend that a recession isn’t good for stocks. The NASDAQ had an even worse day with a decline of 3.0% to close at 11182.

Although valuations are much lower than they were at the beginning of the year, the stock indexes could still have a way to fall, which would be hard on high-growth names. Some economists predict the S&P 500 might decline to the 3000 area before the Bear Market is over.

Tweet of the Day


Chart of the Day

Our chart of te Day is those one-year chart of Zscaler (ZS) which is growing fast even though the stock is down a ton.

Zscaler grew revenue an outstanding 63% last qtr. But Cloudflare says Zscaler slows computer speed, and that’s a bad thing.

During a virtual NET Investor Day on May 12, 2022, Cloudflare’s CEO Matthew Prince made headlines when he slammed Zscaler because their products were too slow and always breaks down that customers hate to use them as compared to Cloudflare’s fast, safe, and reliable unified products. He also said:

“Zscaler actually pays Cloudflare to be their DDoS mitigation service because they just aren’t good.”

He argued that in comparison to Zscaler, Cloudflare products have a better win rates because they

“made a product which is easier to use, that users don’t complain about, and that has much higher ROI…”

With this news, I am thinking of selling ZS. In my opinion, I think cybersecurity should be on the shoulders of the company running the website to make the process smooth. So, if I am a customer, I would rather buy NET’s “bundled” products which will give me a discounted price.

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