Zscaler crashes 31% on ugly guidance — sell the bounces in this broken stock
Zscaler, a major cybersecurity company, just had its worst day ever — dropping 31% after reporting weak earnings and warning that the future looks uncertain. The stock has now lost half its value over the past year.
Idea
A 31% single-day crash tied to cautious guidance and a sales leadership shakeup is not the kind of damage that gets repaired in a few days. Zscaler has already lost half its value over the past year, signaling deeper issues with growth. When a stock falls this hard on fundamentals — not just market noise — investors who bought at higher prices often sell into any bounce, creating a ceiling. History shows that post-earnings disasters like this tend to keep bleeding as analysts downgrade and institutional holders reduce positions. Selling into short-lived rebounds is a disciplined way to play this.