Down Nearly 60%, Is Zscaler Now a Long-Term Opportunity or a Value Trap in the AI Era?
Key Points
Zscaler’s 60% stock drop stems from SaaS multiple compression and a weak May earnings reaction.
A rebound likely requires proof of stronger growth, solid retention, and real AI-driven revenue potential.
After a roughly 60% slide, Zscaler (NASDAQ: ZS) faces a classic execution‑versus‑valuation test amid shifting AI narratives and SaaS multiple compression. Watch the video below to see what must change before sentiment -- and the stock -- can recover.
*This video was published on Jun. 12, 2026.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Jeff Santoro has no position in any of the stocks mentioned. Jon Quast has no position in any of the stocks mentioned. Toby Bordelon has the following options: short June 2026 $90 puts on Zscaler. The Motley Fool has positions in and recommends Zscaler. The Motley Fool has a disclosure policy.
Contact Us
Contact Number :+852 3852 8500Webull Securities Limited is licensed with the Securities and Futures Commission of Hong Kong (CE No. BNG700) for carrying out Type 1 License for Dealing in Securities, Type 2 License for Dealing in Futures Contracts and Type 4 License for Advising on Securities.
English