$ZS

Citrini Research says cybersecurity stocks are outperforming enterprise software as AI-driven threats increase. It cites iShares Cybersecurity ETF (IHAK) up 30% vs S&P Expanded Tech Software ETF (IGV) down 6.2% and weekly incidents per org rising to 2,270 in June. It highlights PANW, Fortinet, NET and ZS, noting Cloudflare Q2 2026 earnings beat and raised outlook. NET, ZS and PANW YTD moves are cited.

The S&P 500 was flat in volatile trading as Western Digital fell 18.5% and Sandisk dropped 11.3% despite forecasts for quarterly revenue above expectations tied to AI demand. Other chip and software names also declined after earnings, while most S&P sectors were higher. Index levels: Dow +0.08%, S&P 500 +0.08%, Nasdaq -0.05%.

U.S. stock index futures were steady as investors awaited details on a Middle East peace deal. Western Digital and Sandisk fell in premarket despite quarterly revenue forecasts above expectations, while Micron, AMD, Marvell and Intel also declined. Software names dropped after earnings, including AppLovin and Datadog. Moderna rose after FDA approval of its flu vaccine. Reuters cited an Iran-U.S. deal proposal; FedWatch showed September rate odds near even.

Simply Wall St reports that Zscaler (ZS) was named a Gartner Leader in SASE Platforms and Security Service Edge, drawing renewed investor attention to its Zero Trust story. The stock trades at $163.22, up 8.51% over one month and 6.15% over seven days, but down 43.59% over one year. A cited fair-value narrative targets $192.58.

Hackers exploited a flaw in Coldcard hardware wallets to reconstruct recovery keys and steal an estimated $130 million in Bitcoin from users, according to security reporting. The article cites TRM Labs and Blockaid estimates of hundreds of crypto incidents and nearly $1 billion-plus in losses. It highlights cybersecurity ETFs CIBR, HACK and BUG, noting YTD gains and major holdings like CRWD, PANW and FTNT.

Zscaler was named a Gartner Leader in the Magic Quadrants for Security Service Edge (SSE) and, for the first time, Secure Access Service Edge (SASE) Platforms. Zscaler says it has held Leader status in SSE for five straight years and that its services protect 40% of the Forbes Global 2000. The company links the rankings to its zero-trust, proxy-based inspection approach.

In Tuesday premarket trading, Palantir’s (PLTR) reported Q2 results and raised full-year revenue outlook drove a broad rally in enterprise software and cybersecurity peers. The article cites Palantir’s 26% jump and links the move to lower Treasury yields after geopolitical de-escalation. It also lists gains for JFrog (FROG), Zscaler (ZS), Palo Alto Networks (PANW), Shopify (SHOP), and UiPath (PATH).

Gartner’s SASE 2026 rankings place Netskope and Cato Networks in the Leaders, with Zscaler newly entering the top group. Gartner cited Netskope’s AI security focus and Cato’s modular approach and higher pricing. Palo Alto Networks fell, Fortinet dropped to Challengers, and Cisco and Versa Networks joined it. Gartner forecasts the SASE market to exceed $18B in 2026.

Investing.com reports cybersecurity stocks gained on fears of AI-driven hacking, citing July 2026 disclosures that an autonomous AI agent breached Hugging Face infrastructure using OpenAI models, plus US government data on rising software flaws. It lists YTD winners such as Fortinet (+102.5%) and Palo Alto Networks (+79.6%) and notes Zscaler (-33.3%) as an outlier, citing Stifel.

Advertisement|Remove ads. Advertisement|Remove ads. Zscaler shares plunged more than 21% in premarket trading on Wednesday after the cybersecurity firm issued a weak sales forecast for the current quarter, overshadowing better-than-expected third-quarter results. Still, retail traders turned more optimistic, viewing the selloff as an overreaction and arguing that ZS stock — which had already declined sharply in recent months — offers an attractive buying opportunity at current levels.