ZS - Zscaler Inc.

Zeta mentioned as up 10.7% and doing well. Host mentions scars from TTD (Trade Desk) make him cautious about Zeta and similar names.

Mentioned as a cybersecurity stock that was unfairly punished by AI fears. Part of the same cybersecurity basket that Kristophe believes will benefit from AI rather than be disrupted by it.

Mentioned briefly as up 3% on the day, described as the most software-focused of the cybersecurity bunch. No detailed opinion expressed.

Has a strong moat and is growing 20-25% per year, but not profitable. Stock crashed 11% on the Anthropic news and has a history of extreme volatility (went from $300 to $120). Host implies the risk/reward is not as favorable as Fortinet due to lack of profitability.

Host is critical of Zscaler — down 60%, back to 2020 prices, six years of zero performance despite 20% revenue growth. Massive SBC, massive dilution, and no profitability in sight. Host explicitly says he doesn't want to be invested in it.

Stock is down ~50% from 52-week highs due to misplaced AI commoditization fears. Business fundamentals remain strong with 26% revenue growth, $3.36B ARR, and 52% free cash flow margins. The Iran conflict is driving increased cyber attacks, accelerating enterprise cybersecurity spending. Cybersecurity is one of the most defensive spending categories — last to be cut. Zscaler's AI security segment grew 80% YoY and zero trust platform hit 450 customers 3 quarters ahead of plan.

Zscaler is accelerating at 25% per year with strong demand, but the presenter does not invest because it is not profitable. Billings growth was weak at 11%, which is something to monitor. The stock is considered expensive on all metrics.

JP Morgan includes it in their cybersecurity basket of mispriced stocks insulated from AI disruption.

Mentioned as a cybersecurity peer that is also experiencing a stock price decline due to the broad software selloff, not company-specific issues.