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Zscaler crashes 31% on ugly guidance — ride the selling pressure

Cybersecurity company Zscaler just had its worst day ever, crashing 31% after issuing cautious profit guidance and shaking up its sales leadership. The stock has now lost half its value over the past year.

Idea

Zscaler didn't just miss expectations — management deliberately gave cautious guidance and reorganized its sales team, which usually signals they see trouble ahead. A 31% single-day drop on massive volume shows institutional investors are heading for the exits, not dipping in to buy. When a growth stock cuts its outlook and reshuffles leadership at the same time, the selling often continues for weeks as more analysts downgrade the stock. The stock is already down 50% over the past year, meaning the longer-term trend is clearly against it.

Key details

ZSdaily#earnings#short_squeeze_risk#cybersecurity

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